Hi Stoo,
I was just at Little Cayman Beach Resort two weeks ago and it was the first time I'd stayed there. I also stayed at Southern Cross Club three years ago.
As has previously been pointed out, most of the resorts (LCBR, SCC, The Club, Conch Club) are all along the same stretch of coastline facing into the lagoon, so whichever you end up at, you are going to be faced with the same problem of shallow water and lots of seagrass. To be honest, Little Cayman is all about the diving (Bloody Bay Wall absolutely rocks!) and chilling out if you want a nice sandy beach to swim off, go stay on Seven Mile Beach on Grand Cayman. The diving is totally ****e compared with LC, but you have got a nice beach it is all about what is important.
For what it is worth, LCBR and SCC both have small pools for a quick dip when it gets hot, and LCBR has got two hottubs (perfect for kicking back with a Stella Artois after a hard day's diving!).
I also had people raving about the food at LCBR and I wasn't overly impressed. It is tasty and adequate, but apart from the coconut chicken (absolutely fantastic) and a good barbecue night, I wouldn't say it was gourmet. Adequate, no more, but they do well to say the island has to bring everything in.
The rooms are comfy and everything is close, so it is just a short wander to the dock on a morning. The dive staff are great and you can have a good laugh with them enroute to the dive sites.
I did 17 dives in all and saw eagle rays, reef sharks, southern stingrays, turtles galore, plus all the usual Caribbean marine life, so you will have a blast.
SCC is a little different now from when I stayed it lost several bungalows in Ivan, and now has three new two-storey units built on property. These looked very nice, and even have a Maldivian-style outdoor shower! It was quiet when I was there, whereas LCBR was quite busy, with lots of people in the bar on a night.
Hope this helps
Mark