The campground is ideal...has plenty of sites to choose from. Some are reservable and others are not, and yes there will be a line at the office in the morning. The ideal sites are the waterfront sites as you don't have to rack your boat every day. You can leave your boat down by the rocks and walk up the stairs to your site. I stayed in site 23...it was right on the corner before the beach parking lot. The parking are was below the tent pad and fire ring. This was the case in many sites. The camper sits below the fire ring and any extra tents you might need. Talked to many people here who stay for a week but actually only use it as a base camp while they are out in the boundary waters. One couple I met said they stay for 2 weeks (the max) and canoe for a couple days then come back for a shower and resupply then go out again. The campground is super clean....and the hosts (which are numerous) are very good at what they do. This might be the most welcoming campground in the United States. 

It is nicely located near ely so if you need something you get can get back into town pretty easily...or if you just want Custard...I'd recommend. The town certainly goes dormant in the winter months, but in the summer months it is full of people. 

The fishing, boating, and paddling here give you plenty of options. It is right on the border of the boundary waters so you will need to get a permit. Day permits for non motorized are free and can be done at the camp check in or via paper at the boat landing area. The camp store is only open certain hours so if they are closed just go to the boat landing to get the permit filled out.