Cabo food was awesome! We ate at the oceanfront dining restaurant at Villa del Palmar several times and had good food at reasonable prices. We also ate at "The Office", which was just awesome! We walked to dinner on the sand in our bare feet. We sat at our table (go at sunset for a romantic evening!) with our feet in the sand. The food was excellent with US prices.
Eat at "Mi Casa" in town for authentic Mexican food. Many of the restaurants are open air and Mi Casa is no exception. Go later in the evening for a romantic setting. We went far too early (6pm) and could just imagine the restaurant bustling at 8pm. Pork carnitas were great and I took half of my meal home for lunch the next day. Huge portion.
We had great chips and salsa at "Caliente's' in town. You will die for the homemade salsa everywhere. Mmmmmm!
Our best and favorite dinner was at "Edith's" in town. It’s also open air and has great food as well as great atmosphere.
We did not have a bad meal anywhere and never experienced any stomach problems. Do be religious about drinking bottled water, though.