Diving the Red Sea
I don’t blame you for wanting to avoid Sharm, the place is a package tour nightmare!
Hurghada is another option, and there are a lot of diving options there for the red sea, but in my opinion Hurghada is just as bad as Sharm for the concrete all inclusive resorts.
If you want a bit of independence, then head up the Sinai coast to Dahab or Nuweiba.
Dahab is a great, relaxed place with more of an Asian/hippy laid back feel than an Egyptian one. Backpackers are more common here than elsewhere along the coast and there are a lot of cheap accomodation options and some great diving! Assalah is the place you want to be rather than the newer Dhab city.
Nuweiba in my opinion is even better, because even less toursists head there, it is jst as beautiful, the diving is just as good if not better, and you can catch the ferry from here into Petra in Jordan if you want to visit the famous walled city and continue your trip.