Amed is great for divers, but for a family getaway, perhaps not the best option. the location itself offers very poor infrastructure, no walking paths, no good restaurants nearby. However, some good temples and other attractions are nearby.
As per the hotel, it should not be rated at 5* for sure. At 5* locations, you'd expect great food (the food at the hotel was very average, bland at times, and after staying for 7 days, you keep eating the same things over and over). You'd expect a 5* location to have fresh mangoes, fresh coconuts, and generally a good selection of exotic fruits (of which the island is abundant), but these could not be provided/sourced (nb: after our comment to reception, they did make an effort and bought some coconuts). the view from the villa was great, the villa itself felt very dated (old), although generally it had everything one requires.
In Amed, Griya is probably one of the best hotels around, however East of Bali is not plush with infrastructure, good trendy hotels, like Ubud for example.
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