Are you referring to the "official" Hershy park campground? It's a nice enough place, in my opinion; the sites are not placial, but are not completely on top of each other as I recall. I've stayed in a fair few campgrounds with less separated sites. There are a couple play areas and some planned activities/movies and a pool.
Generally, I'd say the biggest attraction is HersheyPark itself, as probably goes without saying. It's not too far away, and they run pretty frequent shuttle bus service from the campground to the entrance. I'd treat the campground more as a place to sleep and eat breakfast and maybe relax for a few hours in the afternoon if needed, rather than the destination proper. Others, of course, may see things differently.
(If you haven't been there, you may also want to look into Knoebels in Elysburg, PA.)