If anyone can answer the above, I would be really interested as we are planning to go during October 1/2 term - party of 8, and this would be ideal.

Only my personal opinion, but Tenerife is the last place I'd book all inclusive as all the good food and entertainment is outside hotels.
Last time there we met a couple who spent more time out of their hotel with us, even though everything in their hotel was free.
The best All Inclusive destinations are usually where there is nothing available outside complex.