I was in Aruba in Oct. 2012. We stayed at the Riu and enjoyed it, we booked a junior suite and it was very well appointed. Weather was amazing, only rained once during the night and I loved the island. For us it was the best place in the Caribbean we've ever been too and one of the very few we want to go back to some day.
For us the food was much better than typical all-in resorts from Cuba/Mex/DR/Ja.
The only resort we've been to that tops the food is Sandals in the Bahamas.
I would say you can't go wrong with Aruba if you can afford it. We got it for around $1500pp, so it should be doable for you.
Also all the hotels are along a nice strip where there is a nice shopping area and lots of restaurants nearby, everything walking distance. Even fast food (Mc D's, KFC), if you wanted to reduce price for some people they can stay at a nearby hotel and eat fast food? The Sheraton didn't look too bad. I believe the Holiday Inn is decent also, my parents won a free trip and stayed at the holiday inn, they didn't have any complaints. IMO all-inclusive isn't needed because there is so much nearby and lots to do outside of the resort and it's a very safe island.
Here are some pictures:
Some more here: Rui Palace Aruba
Let me know if you have any questions.