jbb:I think it's worth the trip. Make sure to check out Gato Island and the lighthouse night dive for Mandarin fish. I recommend the chicken Fajitas at Sunsplash. I stay at the Wobbly Boot Resort (Kwan Bar) they have bungalos for 850 pesos or so with private bath, fan - some have taken issue with the place but just make sure the water is turned on to your unit and there are no leaking faucets. They do have a swimming pool too. Otherwise there are plenty of other places to stay with ac and varying price ranges. Shop around because I don't think it will be very busy.
In response to the guys comments on water. I haven't been there during that month but have in May and November. In May at the end of the dry season the well water is a little brackish (I wouldn't drink it at any time). There might be a little sulphur smell to the water but I have never had much issue with it or getting a good soap lather. By August I wouldn't think water scent would be much of a concern.
I stayed at the Wobbly Boot Resort, its a 5min walk to the beach. But, the only issue I had with the resort was, its near a Karaoke bar and listening to out-of-tune-American-idol wannabes at night is too much.
Oh yeah, if you decide to go to Malapascua, you have to try the crepes at Sunsplash - awesome.