When we were there in May, the beach reclamation had made the beach volleyball court much nicer and safer (No rocks to dive onto

) and the occasional errant serve didn't automatically end up in the surf. A VAST improvement !
The water sports department has never been a real major consideration at Desire. It has always been very under-utilized IMHO. Yes, Leo and the boys were still there but they never engage anyone to try to get the guests doing things on the water. They just sit in their corner and wait to be approached, or they are out using the equipment themselves. If you do approach them, however, they will set you up with the Hobies or kayaks and you can use them as you like. If they ever were able to rebuild the pier, I think this would be a more involved part of the resort. But as it is now, it is very lacking.
In the week we were there, I would say I saw (from our beach bed

)maybe a dozen people use any of the equipment on the water.
Steve