When I go to Los Cabos I generally stay in San Jose as opposed to Cabo proper. I like the old town vibe rather than tourist trap vibe. I'd recommend a car if you're not walking distance to Costa Azul (basically anywhere on the Transpeninsular Highway or not in SJD proper) I'd recommend a car anyway so you can go explore the East Cape or even the Pacific side if there's better waves. There's several good restaurants in San Jose. My personal favorite is The Hangman aka El Meson del Ahorcado http://guajirodreams.com/bajamundo/hangman.html, don't miss this one. Cabo recommendations?

Los Cabos is a fun surf vacation destination depending on what you're after. Cabo San Lucas has big hotels, nightlife, a beach party scene, tourist stuff, and restaurants ranging from cheap to outrageous. There is a cool hookah bar/cafe in Cabo I'd recommend called Fumari http://www.yp.ecabo.net/?2,02709504B4,99.d As for the surf there isn't much happening in Cabo proper. The legit waves are along the corridor, at Costa Azul, on the East Cape past San Jose or back up the Pacific side. If you want to stay at your hotel and surf conveniently out front, stay in San Jose at Costa Azul area (a car is nice to escape the crowds) or at La Missiones or close to there but there is only one break there-Monumentos. I definitely suggest staying in San Jose and getting a car. Driving there is really not sketchy like other parts of Mex.