I AM VERY PASSIONATE ABOUT THE AREA, HERE ARE SOME PLACES TO CHECK OUT IF YOU ARE WANTING TO CAMP
#1) Little Sand Bay. https://www.townofrussell.org/little-sand-bay-recreation-area/
#2) Legendary Waters Resort and Casino
http://legendarywaters.com/campground-marina/
HERE ARE SOME OTHERS IN THE BAYFIELD AREA
#3) Apostle Island Area campground
https://www.aiacamping.com Very cute and definitely family orientated, it is also near a bike and beer place called Howl https://www.howlinbayfield.com
#4 Dalrymple Park and Campgrounds, closest to Bayfield.
http://www.cityofbayfield.com/dalrymple-campground.html
This one is closest to town and on the water however there is no real water access.
CAMPING ON MADELINE ISLAND IS THE BEST! ITS LIKE BEING AT A MULTI MILLION DOLLAR BEACH RESORT WITH OUT THE RESORT! THE BEACH HERE IS ONE OF THE BEST THE ISLANDS HAVE TO OFFER.
#5)http://www.bigbaytownpark.com
#6)https://dnr.wisconsin.gov/topic/parks/bigbay
as for spending the night on an island that is not Madeline, Its hard to say what one is best because they all are pretty great! you could go to the Apostle Island National Lake shore site https://www.nps.gov/apis/planyourvisit/camping.htm They only open registration up 30 days prior to the date you want to start your camping.