We have camped at LBL many times over the years. We usually camp at Hillman Ferry. But last year we camped at the Canal CG that is operated by the Army Corps of Engine. We like the fact it's close to Grand Rivers, home of an outstanding restaurant, Pattis' 1890 restaurant.
Hillman offers many lakeside sites with a couple of beaches for swimming and a boat dock for launching your water craft.
Here is a link to LBL CG's with pics and reservation info:
Here is a link to Pattis':