Hey, just thought I'd write a few things for posterity here:
I went to Hurghada the past two weeks (Late September-Early October). I originally intended to go up to El Gouna, but due to my laziness never did.
I ended up at Colona Watersports and spent the whole two weeks there. Overall, the setup was very good and reasonable. 10 Euros a day got you: storage, shower, rescue, compressor and very dedicated help with launching and landing your kite. I was very pleased with Colona although I didn't try out any of the other kite spots in order to compare (I'm sure the others are good too). Big thanks to them.
The spot was one of the best spots for learning to kite that I have seen. It has a large flat and shallow area. My girlfriend, who is learning, really appreciated it.
The wind was absolutely hit or miss. The first week was dreadful. Barely got out a few hours a day and usually so underpowered that getting upwind was damn near impossible. The second week was fantastic and I was on an 8 meter kite most of it kiting all day. My advice, avoid booking well in advance if possible.
Colona is based out of the Magawish which mostly caters to working class eastern europeans on holiday. As an American I haggled a 60 dollar a day all inclusive deal (which included 3 square meals and all day booze) and was more or less pretty pleased with that. Sure the rooms are somewhat ugly but if you are there to kite the convenience of it was more than worth it. The other facilities were sort of Ho Hum, but as I was there to kite I did not care. The entire facility is very spacious but a bit like a Soviet version of The Flintstones.
I did try staying at two other hotels: the Marriot and the Ivory Suites. I do not recommend either of them.
Hurghada itself is a bit of a sad place. It is half built. Most of the buildings stand incomplete and there is virtually no construction work going on whatsoever. I am unsure if that is the recession or the revolution but clearly their was a glut in housing and hotels.
Taxis are everywhere but they are very mercenary with trying to rip you off. Small Tip: about 15-20 Egyptian Pounds should get you wherever you want to go in Hurghada. No more. Don't let them try to give you change in "Plasteres" which is Egyptian Pounds version of Pence. They come in notes so you can be easily deceived if you are not paying attention. Anytime you are leaving a popular tourist area (Airport or Marina etc) you will be better off walking by the first group of guys trying to give you a taxi. These guys are almost always trying to scam you.
If you are not that experience in dealing with developing countries then I highly suggest staying in some sort of all inclusive resort. Otherwise, you will get repeatedly taken advantage of and be scared by some unsavory characters.
All and all, Hurghada is cheap with good kiting. If you can get to it at a reasonable price and are serious about a kiting trip you will enjoy it.