I would do both.Carmel is a quaint, artsy town about two hours south of San Francisco. It s a nice place to visit, and there are lots of things to do in the area. My wife and I visit our son in the Bay Area about once a year, and after seeing him for a few days, we then go either to Napa Valley or Carmel for a few days. But regardless of which direction we go, we also always have at least one day in San Francisco.
Yeah, you can do both! It would only take a couple hours to drive from San Francisco to Carmel.Carmel has fantastic dining and shopping. If you golf, they have some good golf courses nearby, including of course the courses at Pebble Beach. If you bring a dog, Carmel is VERY dog-friendly - many stores will let you bring your dog inside, and some restaurants have outdoor seating for people with dogs, and a menu for dogs. Carmel would be a decent home base for exploring other places in the area - Monterey Bay Aquarium, driving down to Big Sur, visiting Santa Cruz, etc. Compared to San Francisco, Carmel is slower paced, more relaxed, less crowded, and just about as cold.
Carmel by the Sea is a quaint and scenic village 5-10 miles south of Monterey. Just as pricey as SF, without the traffic or the City like ambiance. Good food, quiet nights, close to Big Sur and Ventena wilderness, if you like outdoors. Pebble beach, and Clint Eastwood roaming around. I personally like the variety of San Francisco, but Im biased because I lived near Carmel for 25yrs.