We loved our stay in Apollo Bay! The beach cottage is exactly as described -a cozy beach shack just a sort walk from the water. There is a caravan park next door, but apart from one instance of a van parked across our driveway for 5 minutes this didn't impact our stay at all.
It got quite cold at night for us Queenslanders, but we chose not to use the heaters - the blankets were sufficient.
Apollo Bay still has the charm of a small beach town, and I would stay at the beach cottage again next time we're passing through.
Fiona was great to deal with as well.