I have tested the current version of the Beach House with WordPress 3.3.1 and it is compatible.
Out of full discretion this theme does not have a lot of the newer hooks and features incorporated into it. I will be looking into see what I can add to the theme to make it more feature rich. I also do have a redesign for the Beach House theme in the works as well. The new theme has more horizontal space for your posts and pages like many of the newer themes that are available.
Thank you again to everyone that uses the theme. Be sure to drop me an email if you have an questions or issue in regard to installing or using it.