My planning is the same as K Joe's. You wouldn't want to put any entertainment anywhere else than near the docks in my opinion. OK so the overseers have a way to walk but once they get there they love the anarchy! If you put entertainment where the majority of your captives work it would upset their need for order and any pirates or overseers going to them would be upset by the order! Although it does suggest in the Book o' lore to put some entertainment close to your Palace to ensure that their are pirates around in case of captive rebellions.
It is difficult at times to fit in enough housing plots near to the docks, but as pirates don't always need to visit their plots every shore leave I found it's not too much of a problem having them a bit further away. Here's a diagram of how my typical plan looks.
D O C K S
PIRATE PLOTS ENTERTAINMENTS PIRATE PLOTS SHIP
PIRATE PLOTS ENTERTAINMENTS PIRATE PLOTS YARD
PIRATE PLOTS ENTERTAINMENTS PIRATE PLOTS
CHUCK TENT/BUNKHOUSE/FARMS BLACKSMITH/GUNSMITH/DISTILLER/TABACCONIST/FARMS
SAWMILLS AND TIMBER CAMPS
I'll put extra decor stuff in as needed. Using the buildings that give off auras, blackmarket - defence and grave yard - fear etc. in the right areas, really helps. Of course it all depends on where your natural resources are to start with. I often put timber camps nearer the sea to begin with to clear later farm areas.
Island planning is an area that I really like and I'm still learning too!