Hanalei is in Kuau'i, Hawaii
When I went to Hawaii on vacation a few years back, I learned that Peter, Paul and Mary were on a boat near the outer edge of Hanalei Bay, northern Kuau'i, Hawaii (getting high) and looking to the shore. The mountains that frame that bay from the seaward view resembles a dragon - this was the inspiration for Puff the Magic Dragon, and Honalee is really Hanalei (been there).
PS: I like to listen to music, but I'm not as musically inspired like others, I don't turn the radio on in the car when I drive, I don't download music ever, I've got old LPs and cassettes at home from my younger days, but I haven't bought any music other than gifts for others in 20 years - music doesn't make me want to map (I map in silence by preference.) So while I can agree this might make a good challenge theme - it ain't for me.
PPS: I didn't vote because "No, I hate music" doesn't apply to me, because I don't hate music, but 'No' is my vote in absencia.