It's a natural, monster-wise.
The only city that would look spectacular being destroyed is Honolulu, but it's a big city and would look real good blowing up.... and the rest of the scenery otherwise is awesome (hell, look at LOST, among tons of others...)
Being almost literally in the center of the Pacific Ocean, its seismic/volcanic nature and its superstitions and folklore are all interesting starting points. Some of Hawaii's history is pretty horrific and violent, too.
And the Nightmarcher folklore would be great in a non-kaiju Hawaii thriller.
Even taking some of the images of tiki gods and tweaking them a bit this way or that way could produce some kool kaiju kreatures.
A bit on the kampy side, no doubt
Add to that some volcanic action, some sea monsters like giant octopi and/or jellyfish, and....
http://image48.webshots.com/48/9/74/82/ ... Wav_fs.jpg
edit... Sorry, I sound like a rep from the Hawaii Tourist Bureau.
