Phoenix,
The house we are building is about 5 miles from Betterton and we used to keep our boat on the Sassafras so, yes, we do have some knowledge of the place. Are you buying one of the condos on the hill or an older single? We looked at the condos before we bought our land on Still Pond Creek. The condos are nice with many having a great view of the mouth of the Sassy and you do have the state park with a nice beach right there but the condo wasn't what we were looking for. In my opinion the rest of Betterton is looking a bit tired. You can't find an open restaurant on weekdays after Labor Day with one exception, I think, and that one is only open in the evening, if open at all. You are close enough to Chestertown for good shopping and restaurants. The waters off of the point can get rough if the wind is up or when the Pennsylvania Navy is out in force so I would suggest you forget about keeping a boat at the docks there unless you can get a lift.
All that said, if you can get a good deal, go for it! Betterton might be hot real estate when the market comes back to normal.