Last night while I tried to (unsuccessfully) sleep in the hammock, I could hear dolphins breaching and birds diving for fish. This is why people drive down the Baja. It's calm, beautiful, and the people are very nice.
A recap: The last few days have involved a lot of driving. We left San Felipe and headed west towards Ensenada last Tuesday and stayed in a hotel because El Niño was on the rise. Wednesday we left and headed south on Mex 1 and stayed at Fidel's campground in San Quintin. Thursday involved wet tents and a long drive south to Guerro Negro, through the border crossing into Baja Sur from Baja California. We slept in the car at an RV park in Guerro Negro, and thank goodness because it ended up raining all night long again. But there was a beautiful double rainbow the next morning.
Friday morning was an easy drive back east towards Mulege (still on Mex 1) where we had an excellent lunch of tacos and beer. All tacos are deep fried and so yummy. We drove another half an hour to where we ended up here on the beach for two nights, star gazing and laying in hammocks. 
Tomorrow we head for La Paz for at least a week. We could easily stay here longer, but we made reservations there already. We fully plan on staying here on the way back up though!!
Dad, Check out Mex 1 on the map and watch how it goes from the west side to the east side and back west. This is the one main road through Baja. They are furiously paving more and more roads here to make smaller towns more accessible, but the Prius can only handle so much on the dirt roads. So we are primarily driving on Mex 1, which in some places is still totally covered in potholes, mudslides in the rain, and isn't even paved every once in a while!!
Nick here...
In short we have finally made it to the paradise we were looking for. Warmer weather, beautiful beaches, Jackson is in heaven and most important, no rain.