Yup-but that's why you cruise to places like Hanauma and snorkel, or one of the smaller places around the north side of the island. Tourist areas aren't that bad from where I've gone though. I've certainly seen worse places. But, everything is a little crowded cuz it's a small place.
As far as the Navy side being a slum (if I read that correctly) I can't really speak for that. From what little I've seen of the Navy side, it seems to be a little less organized than what I'm used to on an AF installation, but my experience on that side of the installation is extremely limited