Carmel/Monterey is a great place for sightseeing. There's the aquarium, Cannery Row, downtown Carmel, the Carmel Mission, the 17-mile drive, etc. etc. You can rent bicycles and ride along the beach frontage from the Monterey city line to Pacific Grove, and, if you want a more strenuous workout, up and down the 17-mile drive into Carmel. There are many great restaurants and places to stay, however, my two favorites are the Spindrift on Cannery Row or the Baren-approved Cypress Inn in Carmel.
Personally, I wouldn't want to take a kayak out into the bay because of the kelp beds - they are massive.