Yep - most of the area is still under development due to it being a relatively new resort, but the hotels are mainly top class resorts. Stay in named accom like Movenpick, Four Seasons, Novotel, Hilton and Sheraton and you can't go wrong. Stay at a beachside resort for a good time.
There's one small town in Sharm- Naama Bay, it has shops, restaurants and the like and is quite Westernised. It seems to be the hub of the whole place. There's an old-style traditional market not too far from here, too. Bad thing is, you get harassed by locals into eating at their restaurant or buying from their shop.
I'd thoroughly recommend Sharm for a relaxing beach holiday. But it's good to get out and about and see other areas....the boat trips to Tiran Island are amazing and the national park of Ras Mohammed is nearby.