First off, we stayed here in March of 2024, and yes, there is a new retaining wall and there are no steps down to the beach, yet. From the look of things, there probably will be fairly soon. This didn't stop my kids and us parents from just climbing down the retaining wall to the beach. If you're between the ages of 8 and 58, you can probably just do that. If you have a hard time with that, you can literally walk down the street two houses down to another beach access point, then walk back to be right by the house. So easy.
Regarding the upstairs renters, yes their balcony overlooks the back yard, so if you're out by the awesome fire pit, or sunning yourself in the great beach chairs, they'll be able to see you. If the blinds are closed, they won't see you in the house. But gimme a break, if you're in the backyard, literally ANYONE walking by on the beach, or anyone in any of the adjacent houses can see you. Also, yes, the upstairs renters' access to the beach goes through "your" back yard. You might actually have to smile and say "hi" or "Great day for the beach!" and then continue ignoring them after that. We never had to. If you want your own private beach with no one else around, you might just have to rent your own private island! For me and my family, this place was great!