We recently returned to Punta Sur the first week of March and are happy to report that the road is greatly improved. There were only a few large potholes and a crew was actively working on repairs. The snorkeling was excellent. There appears to be a new beach club open to the public (not just the cruise ship passengers).
We also went to Paradise Beach Club intendting to rent paddle boards. However, we were informed that, in addition to the $3 USD entrance fee (we knew about this), there is also a $10 USD minimum of food and drinks even for locals so we left.