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The Pizza place right on the water in Avalon is pretty damn good. Its a peanut shell on the floor type of joint. The bars where the locals hang out are mostly on side streets just up from the main street. Check out the Whaler if you want to see the locals get shit faced.
Go to Descanso Beach if you want to relax in the sun. They have beach chair cocktail and food service and the beach is much bigger/nicer than the little bit of sand by the pier.
Have a great time - let me know how your trip goes. I took the family out there 2 years ago and had a blast!
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