We had a great time at Watermen's last week. The staff is very helpful and genuinely friendly - they even accommodated my towel request when I'd overlooked the washer / dryer!
As others have commented, the trailers directly behind the cabanas devalue the property itself. The overall feel is more like a park cabin / campground, than condo neighborhood. But our cabana was well appointed, clean and comfortable for the four of us. The shower off of the carport is really convenient after a day at the beach. Watch out for the thorny seeds in the grass - no walking barefoot, and our dog got them in his paws every other time he went outside.
Waves itself is metaphorically and physically midway between Nags Head and Hatteras. It seems mostly touristy, but it is not as crowded as areas North. It was good for us as we had activities planned in Frisco as well as Kill Devil Hills. It would be ideal for groups planning water sports in the area. The kite launch is really nice, and the waves by Rodanthe pier are great for surfing.