It is a loaded question because you don't always have to be on "big water" to get a nice view, and how rough the water in front gets is relative to where you are, direction you are facing and so forth.
My preference is you cannot beat a nice view. However I would be very careful not to be in a spot where you are likely to get very rough water on a windy day or due to typical summer time boat traffic.
One major drawback to me being in a cove is water quality. Still water and especially shallow water tends to come complete with weeds, and stagnant water which is not always great for swimming. Again that varies depending on where you are.
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