As a family of 5 the only way we could afford the holiday was in a Beach Bungalow ! We returned yesterday having had 14 nights in Kuredu in two Beach Bungalows and I wouldn't hesitate to recommend it.
No-one treats you any differently. There are two bars you can't drink in unless you want to pay - the Sangu and O Resort but to be honest they are at either end of the island anyway - all of the bars in the central island area are included. We met a couple who were clebrating their 35th wedding anniversary who were in a Beach Bungalow just down the beach from us who had upgraded to the All Inclusive Gold that allowed them in any of the bars, cocktails and minibar re-fills each day - we still tended to meet up with them each night in the Akiri Bar drinking G&T, Beers, Wines etc - they were treated no differently to us at any time by any of the staff.
I'd recommend the Beach Bungalows - they are a little tired but are being upgraded - I think they were on the early 400's whilst we were there - you may be able to find out from the resort or the tour operator what the plan is for the refurbishment. The rooms were very clean and comfortable and there was nothing that would put me off recommending them. I'd save the money and spend it on Snorkelling trips, Spa treatments and diving !
Hope this helps
Neil and Joanna