Great camping on both sides of the lake. Launch at the boat ramp, or drive around the lake, across the dam, and launch from the rocks near the spillway.
Loon Lake is spectacular and much larger than you'd expect (actually joined with Pleasant Lake). The kayak guides recommend staying off the lake when mid-day winds fill in. We've spent some time, over two different trips, on this lake and would warn anyone without Mirage Drive to use caution. The winds are strong, and the lake gets rough; don't let your friends with conventional kayaks follow you into the east end.
We've found sailing to the far end (Pleasant Lake) works well, and then take off the rigs, tape the mast sections together, fold up the sails, and take your time pedaling back against the wind and waves.
This photo is taken in the far end (Pleasant Lake portion); you'll enjoy exploring the rock islands.