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I've heard really good things about Grand Marais, but I have never spent a lot of time there. We were going to make the drive when we visited Duluth, but it would have eaten up a lot of our day. Bayfield is definitely worth visiting at least once in your life.
It's definitely a fun town but is a lot of drive-time if you aren't actually staying in the area. Bayfield is on my list, for sure!