My wife would like to go for a warmish sandy beach destination.
I google Egypt and it seems that most of the all inclusive holidays I could find where in Sharm.
It seems practical for me since my wife does and my two year old son do not dive.
However I read that a dive from Sharm will mean that I would probably be out on a boat for most of the day.
Although this is not a show stopper, I wanted to know if there was maybe a better destination for a family with a kid closer to the dive sites in Egypt with access to sandy beaches.
Never been in Egypt before.
If you have non-diving family, but want to enjoy a quality diving experience, I would recommend El Gouna. This is a resort enclave just north of Hurghada. (It is like Sharm El Sheikh, in miniature). You fly into Hurghahda (direct or 1 hour flight from Cairo) to reach there. I took my wife to El Gouna for a non-diving holiday and she loved it. There is a town center with restaurants with all sorts shopping from souveniers to high-end jewelry and clothing; as well as terrific food, including an Italian restaurant (Zia Amelia) that is on par with European equivalents. This is a gated, private enclave, so you won't have any hassles,. The Sheraton Miramar - a five-star hotel/resort for the same price as a Best Western in the U.S. Most, if not all of the service staff will speak English and many will speak French, Russian, and German as well.
From Gouna you can dive up and down the coast. In nearby Hughada there is a harbor area, easily reached from Gouna (ask your hotel concierge to arrange a transfer), with a plethora of restaurants and a tons of tourist stuff for non-divers; like glass bottom boats; there is also golf, ATVs, horse riding, camel trekking, and the usual panoply of tourist activities.
Non-diving family might enjoy Sharm, depending on the level of resort you select. Virtually all of the resports are compounds where you go there and stay there. You do not really walk around in Sharm, though taxis are plentiful; most of the shopping is low-end tourist crap. Many of the most exclusive resorts are "adult friendly." They won't want younger children.
Beware of "family" resorts. While these seem like good options (they are usually less expensive) and will have stuff for little kids to do, the children of wealthy Egyptians run wild. For westerners who are not used to children in packs running around the bar at 11 at night, it can be irritating.