I just did a bunch of research about this for our summer vac., complete with emailing a friend of mine in Houston. He just came back from a Galveston-based cruise too. Here is what he wrote me back:
"I would not recommend Galveston for a couple of reasons. One is the recovery from Hurricane Ike is likely to take a few years. Much/most of the island's coastal homes were simply destroyed. If you were up to doing a hotel/resort thing then the San Luis is the only way to go. Just about everything from a home is going to be at least a block or more from the beach. The second reason is because of you mentioning South Padre. I've vacationed there and along the Florida panhandle (Panama City area) and trust me, Galveston beach is no South Padre. It's not as bad as it used to be but you might still have a time or two that you step in a small crude oil patch on the beach from one of the offshore rigs AND the water is just not very pretty. I'm from Daytona Beach so I admit that I might be a little more critical than some but between the hurricane damage and my concerns about what you may think of a beach you've committed to stay a week or so at, I would consider finding another beach to visit for now."
Hope this helps! We decided on Port Aransas for this summer. I've visited Port A many, many years and we always stay at The Gulfstream condos. It's wonderful - they comb the beach every morning and are very reasonably priced.