I've only been through there once (last summer), we stayed at Digby Pines Resort. We drove down to Brier Island and went whale watching. It was awesome, saw something like 40 Humpbacks, 2 North Atlantic Right Whales (they are endangered) and 1 Pilot whale. The boat took us by a seal habitat on the way back and there had to be close to 400 seals in the water and on the rocks.
I don't remember where we ate but it was right on the boardwalk and was pretty good.
You can always time your visit around the
Wharf Rat Rally - August 29 - September 2, 2012.