As Ben 76 said, there's not much lost in avoiding the coastal strip - especially if you want to do the beach thing. Nip over to Spain for that.

I see both your options cover a stay in Tinerhir followed by Merzouga. As Tinerhir is just past Dades and right next to Todra, I'd miss a Tinerhir hotel and instead turn up the Dades valley for the night. It gets periodically chocka with auberges as you climb - within a hour you get to the end of the tarmac road (more or less) at Msemrir, but long before that you can stay at a hotel right over the famous hairpins for 250dh half board. There are scores of other options. Chez Pierre's would be a treat.
Dades up and down will be a highlight - the same to Todra less so in my opinion, but continuing right through Todra up to Ait Hani, then northeast to Amellago village and south again at the tiny roundabout through the Rheris gorges down to Goulmina is a great ride with very little traffic. From Goulmina it's a couple of hours via Erfoud to Merzouga. A brilliant day's ride, imo.

The ride down to Zagora from Ozt is more popular but also great. I hear they've sealed the piste from Zagora northeast towards Tazzerine or somewhere (MS2 in the book) so less backtracking and more great desert vistas.

If its the Gnaoua Festival its absolutely fantastic, don't bank on early nights some stages don't start until 11 and run through to the early hours. Most of it is free with some smaller venues in riads etc having tickets.

Be careful on accommodation, prices go up for the festival and any where in the Medina or the first bit of the sea front will get noise from the stages.

Have you thought about dropping Chefchoen of your intinery? its a long trek north and probably 2 days in some pretty boring countryside (imho). If you dropped the northern loop you could have more time to really explore the south.

If you went south from Essouira to Tafroute then Sidi Ifni you could then pick up the desert highway all the way east to Merzouga before looping back to the Dades and Todra Gorge, stopping at Ait Behaddou and maybe take the Tizi n test pass to Marrakech. Could mean more relaxed days travelling

Just wondering if Tinghir to Marrakesh is possible in one very long day. I ride quickly and have covered 700km a day in South America before, but that was entirely on pavement.

Dropping Chef. and the northern loop is a good idea I think. (Maybe you have some specific 'business' in the Rif. Then definitely avoid the area!)
It's a nice town but not worth that detour when time is short. I'd choose the mountains or desert.
Oh yes! Roman ruins at Volubilis near Meknes. Very interesting.

We reliably do Ozt to Marra in 4-5 hours with lunch and Ozt back to Tin is a fairly clear, flat road by comparison. So yes doable, but less so if it's the day you pick up the bike and have to find your way out of Marrakech.

Yes, Tinehir is just a placeholder on the map. We were planning on stopping somewhere near the Gorge. Thanks for the hotel recommendation. We will certainly check out the Chez Pierre.

Thank you everyone for the help. We had a fantastic time and will certainly consider returning.

We mostly stuck to the plan, but we spent more time in Assilah, Chefchouen, Essaouira, and the Atlas mtns. We found very little of interest in Jadida, Casa, Cueta, Rabat or Marrakech and left those as soon as we could.

All of my travel time estimates were fairly accurate except for the ridiculous amount of time it took us to transit Casa and Rabat and the surrounding cities on our way from Essaouira to Assilah. We had no problem at all making Meknes to Merzouga in about 5hrs, and that was easily some of the best scenery of the trip.

We found the people outside the big cities to be as friendly and helpful as any country we've ever seen and we'll certainly consider returning one day, perhaps to retire in Assilah or Chefchaouen.