You are more looking for a place like Mykonos... forget about the gay thing in Mykonos : there is not more gay there than in any other city in the world...
Go to Paradise and Super Paradise beaches :
http://www.sfeuro.com/sf/europealbumlist/mykpar/
Nice landscapes and beaches, party people, pools, bars, dance, beers, girls from all over the world (cyprus - god i love Cyprus, Cyprus girls are like heaven - Italian, Spanish, English, American girls, they are all there...)
Rent a 4x4, it helps to travel on Mykonos