2nd year JABSOM student here...
Whoa, I haven't been on these boards in a couple years, but being as you're being told things by people who a) graduated from JABSOM already and b) only interviewed here and had brief impressions of the program at best, I might as well tell you what I know of the school.
Just for background info, I am an out-of-state student who chose Hawaii over GW.
Anyway, as far as studies are concerned, it's true that you have tons of free time... to study your butt off and learn as much as you can. I loved this as I could learn according to my own pace, without feeling burnt out after long days of classes. Another thing is that you aren't ranked here, so that takes away a lot of intraclass hostilities which may develop (I have a few friends in other med schools who hate the pressure of being a ranked students).
As far as the USMLE Step 1 is concerned, although it is true that in the past students did just OK, last year's class scored an average 7 or so points above the national average. Not too bad considering they were coming off the Manoa floods and were practically school-less for half the year.
As far as residency is concerned, I too felt like I needed to do exceptionally better than the average applicant to be considered for a competitive field... until I saw last year's JABSOM match list. I would be glad to share this with you (I'd have to give you the Excel file without names or something), as it was a truly kick-ass list. We had a student go to Harvard Derm, a couple ophthlamologists, a urologist to UW-St. Louis, and so on.
I figure you might as well get some hard facts in while you're making your decision.