I think this is the better of the two Oak Bay campgrounds (upper and lower). It has some nice sites in the woods with privacy. There are a couple of sites with good views, but they are very close to each other.
I would recommend camping in one of the wooded sites, and then walking/driving to the Lower Campground for the day. That's a much more beautiful spot, but there are no trees and the sites are right next to each other with no privacy.
You're also very close to Marrowstone Island, which is one of the best kept secrets of the Olympic Peninsula.