I've read a few places of Makawao being an interesting place - how long would it take to drive from Kihei area to Makawao - are there nice hikes in the area or basically just shops?

About 45 minutes, give or take. Not really a hiking area, but lots of artist studios, galleries, some good places to eat. Casanova has really good Italian at upcountry prices. We go there when we can. Makawao Steak House is supposed to be good, but since I don't eat meat, I've never eaten there.

It is a nice drive, though, and you can combine a trip to Makawao with other places upcountry, a trip to the summit, etc.

I hate to diagree with gone2maui,who always has first-rate info on Maui. We can get from Kihei to Makawao in closer to 25 minutes( turn right at the sugar mill to avoid Kahaluhi traffic). It is a cool little town with some good shops and funky old-style Hawaiian general stores. The weather is cooler and wetter than Kihei and makes for pleasant strolling. One of the stores runs his own meat smoker and has a good selection for a picnic lunch.
Makawao is on the route for the downhill bike rides and you might see groups riding through. You can continue down the hill to Paia for more shopping and dining. The bikes pull over and let traffic pass.

I probably wouldn't plan to drive from Kihei just to go to Makawao.....usually I make it part of the plans going to see the Haleakala sunrise. Then on the way down, stop in Makawao (don't forget the Komoda Bakery cream puffs!) and then Paia.

Hey, logandog, if you're getting from Kihei to Makawao in 25 minutes, you bes' slow down, brah! I drive to Makawao town to see a client regularly, and according to my mileage log I drive 25 miles each way, and that is taking Hansen Road. I wish I could make it there in 25 minutes! Heck, it can take me close to 20 minutes just to get from my house to Hansen Road sometimes.