Yes, I have been to the Bodrum peninsula several times. I know Turkish people who have a vacation house there. It is a truly beautiful area with white cube houses, clear blue sea, lots of flowers, ...
In the town of Bodrum you can find many famous discos and bars, but there is also a castle with a museum for underwater archeology.
Around the peninsula, there are many nice small towns with nice hotels on the seashore. It is more calm there than in the town, the beaches are much better, and Bodrum is easy to reach by public transportation.
Inside the peninsula, there are nice and traditional villages.
Ancient archeological sites (e.g. Ephesos, Pamukkale, Milet, Priene, Didyma, Euromos, Herakleia,...) are easy to reach. There are also tour operators in Bodrum who offer tours to these sites. These tours aren´t very expensive, and often, lunch is included as well as a stop on a carpet manufactory.
For further information see:
http://www.bodrum-bodrum.com
http://www.bafalake.com
http://www.allaboutturkey.com/aegean.htm
Furthermore, I have been to Istanbul. There is a lot to see (Palaces, Mosques,...) and do (shopping, cruise on the Bosporus,...)
See link below:
http://www.istanbulcityguide.com/
In general:
* Turkish cuisine is excellent
* it is rather cheap (from the European point of view)
* there are lots of historic (archeological, osmanian sights)
* there are also traditional villages (often very picturesque)
* the people are friendly and helpful
In summer, the vacation spots are a bit overcrowded, sometimes and it is rather hot.
Best travel time is May, June and September. This time is also better for excursions to the countryside or to excavations.