Birch Bay is a great idea for a summer vacation. There are plenty of vacation homes for rent, and you can get some good deals on a rental cabin if you look for them. Birch Bay is a great place to take the kids, and of course if you have a dog, there are pet friendly rentals out there if you look.
Birch Bay is famous for it's sunsets, so be sure to bring a camera. In the evening, you can sit on the beach with your back against a log, and get some spectacular photos.
There is the state park on the south side of the bay, and lots of beach to enjoy. You might enjoy to go kayaking or canoeing with your friends out in the bay. If the wind picks up, stay closer to the shore, and be sure to bring your life jackets.
If you are coming from Canada, Birch Bay is just south of the border. After you clear the border line up, it is only a few minutes away. Although the exchange rate is a bit high currently, a summer vacation here does not have to break the bank. Get a cabin with a fully equipped kitchen, and you can cook your own meals rather than dine out. If you have a big family this can save you a lot.
If you are coming from the USA, then this is perhaps the last resort before Canada. In 2010, Blaine appointed itself the 'Gateway City To The 2010 Olymnpics'. From here you can cross the border and visit all that is in the Vancouver area, and be back for dinner.