Well firstly let me say that Surf's Up is my favorite animated movie of all time so rock on.

(Of course after seeing Cloudy with a Chance of Meatballs I realized anything that Imageworks does is on my favorites list

) I read through your blog and it all looks quite good. I'm looking forward to seeing the finished project. I did have a few thoughts/suggestions/critiques for you though.
(1) I don't really know what angle you're going to use for the final shot but based on the most recent animation test you had up there, you can see where the wave cuts off near the end of the clip. If you're sticking with that shot then you should probably crop it in a bit more or extend the length of the wave so it doesn't just drop off like that. If you aren't using that angle then disregard this part.
(2) The animation of the wave itself seems a bit off after it crests. The area that is mainly catching my eye is the center where it first starts to break. It seems to hesitate a bit too long and then almost thrusts itself forward as if it has something accelerating it. I know next to nothing about Houdini so I don't know if that is strictly simulated or if you have control over the motion but it doesn't seem quite right to me. I know that once it breaks gravity takes over and it crashes down fairly quickly and I think it's being held a split second too long.
Overall, some very nice work though! The shader is looking excellent. I will be checking up on this frequently to see your progress.