We live in Grand Marais, MN and have since 1989. I was born and raised in Two Harbors and lived there prior to moving to Grand Marais.
Hwy 61 is two lane and can be slow with all the tourist traffic, especially on a Friday heading north, Sunday going south. There are a lot of State Parks between TH and Canadian Border. Gooseberry, Split Rock, Tettegouche, Temperance River, Cascade River, Judge Magney and Grand Portage. All state parks have camping except Grand Portage. All have ample hiking trails. . Nice municipal campgrounds in Two Harbors and Grand Marais, not sure about Silver Bay. Grand Portage Indian Reservation also has campground next to Casino. There are also a couple of private campgrounds (Lambs in Schroeder comes to mind). Several national forest campgrounds inland. Lots of hiking opportunities, kayaking, canoeing, charter fishing on Lake Superior, mountain biking, stretches of paved bike trail along Hwy 61. Lutsen Mountains you can ride the Gondola up to chalet and or ride the Alpine slide. Grand Marais is a tourist town right on Lake Superior, little shops downtown. Community caters to art scene. Music at local bars is very popular. Outside seating, etc. Two Harbors not quite as quaint and touristy as Grand Marais. Grand Marais is more of a destination.
Lots of nice family owned restaurants up and down the shore. The North Shore is obviously geared towards outdoor activities. Numerous community festivals and events up and down the shore throughout the summer. Hope this helps.