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Yes, Muskegon & GH have excellent beaches. Muskegon's Pere Marquette is huge and clean, and has ample parking. If you want to bring a dog, you can go to Bronson / Krause park about a mile south down the lakeshore. There is a concession stand and a bar & grill (Capt. Jack's) on the beach at Pere M., and an upscale restaurant 5 minutes away by car (Docker's). Aside from that, Muskegon does not have the typical touristy boardwalk shops right on the beach that other places have, but during the summer, there is a trolley that will take you downtown ($1.25; $0.60 for seniors).
GH is more touristy, more expensive, less racially & socioeconomically diverse, and has a more attractive downtown than Muskegon. Its beaches are generally more crowded. Muskegon is currently in transition from an industrial city & port (the kind of place that people describe as "gritty") to someplace that relies more on healthcare, education, and tourism for its economic base. There are a number of summer events in both, like the Coast Guard Festival in GH or Bike Time in Muskegon.
I don't know much about the city of Ludington, but it has been described in other threads recently (use the search function). I can tell you that the Nordhouse Dunes near Ludington is a good place to camp.
Muskegon is not nearly as artsy as Saugatuck, but it does have a decent art museum (the MMA), theater (the Frauenthal), and indie cinema (the Harbor) for a city its size. If you can stay for free and you like beaches, then yes, you would probably enjoy visiting Muskegon next summer.
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