Shell,
Cape Ann is made up (primarily) of the towns of Gloucester & Rockport, MA -- neither as big or touristy as Newport.....both unique in their own way.
Rockport is a quaint New England coastal town. There is a small downtown area right on Rockport harbor that has lots of quaint shops, galleries and restaurants. The business district is small though...just a few blocks worth of retail stuff.
Gloucester is the bigger of the 2 and is little "rougher around the edges" (more working class and less quaint). It is a working fishing port with an extensive commercial fishing fleet.
Night life in these towns is quiet...nothing like Newport. There is some tourist traffic, but again, nothing like Newport.
Cape Ann is a popular diving destination for several reasons -- many shore dive sites, ability to find a divable site regardless of wind direction, good charter boats with wrecks and other nice off shore sites close by, decent access to the water. Topography is rocky, which also makes for nicer dive sites.
Both towns are picturesque, with many big beautiful homes.
Some key links:
The only dive shop on Cape Ann. Gear is somewaht pricey, but they are very helpful and will give you advice on dive sites base on current weather. THey also run 2 great charter boats --
http://www.capeanndivers.com/
General Cape Ann web site with various links:
http://www.cape-ann.com/
CA Chamber of Commerce with some great links:
http://www.capeannvacations.com/resources/links.cfm
Hope to see you up here sometime soon!
-LD