I lived down there for three years. My preference would be Scampi's. It's on the Laguna. The bar unsptairs has music and dancing. Both dining room and bar have good view of fireworks. I think it has the best food on the island. Also, about as "elegant" as you'll get down there.
SeaRanch is also very good. Not quite the atmosphere of Scampi's but good seafood.
There is a restaurant on the Blvd that thinks it is the end all be all, but I am still waiting for a really quality meal there. Stucco building on left as you go north from causeway.
As you leave the causeway and head north, there is a retaurant on Gulf Blvd that faces the water. I can't remember but it has a man's name (Athur's, Ted's or something like that). It is a hang out for our former staff members Bobby Jack Wright and Dana Leduc. I have been there twice - first time, my fish was frozen in the middle; second time, the fish was spoiled and I could smell it long before he got it to the table. Management really didn't seem to care.
Lesser places - Louie's Local's Bar (avoid the "tourist buffet ripoff" and go upstairs. There is a menu, lots of TVs for sporting events, pool & shuffleboard. Just speak to the guy at the bottom of the stairs and act like you belong. (If it's a big guy about 60, his name is Bear.)
Tom & Jerry's - local version of Chili's. Popular with locals. Leah is the manager.
There is a sitdown restaurant at Schlitterbahn that runs specials. Food is really pretty good and prices are reasonable. You do not have to have a Schlitterbahn ticket to get into reataurant.
Gulf Coast Oyster Bar runs specials that are hard to beat. Used to be Wednesday was sirlion strip, potato and salad for $7.50.
Isn't Amberjack's on the Laguna side? You are correct that it is absolutely that Amberjacks is horrible. The guys that owned it also owned the old BBQ place that became Bubbas or something like that.
The place I'm talking about is between Gulf Blvd and the dunes and has a view of the water if you stand on your chair. The parking lot is directly at the end of the street coming off Padre Blvd.
I forgot about a dumpy little Mexican restaurant across the causeway. Go over bridge and turn left at first light. About a block on the right is a real dump, but the best and cheapest Mexican food down there. I can't remember the name, but it had a complete dinner for under $5. Mostly locals and families.
Blackbeards does not rate with Scampi's or SeaRanch. I would go there for a steak special once a week. Strange situation, the food was always better if I sat at the bar than in the dining room. Not sure why, but it was like two different restaurants. I never thought the seafood was anything to write home about. the steak was OK since it was reduced price special. I rate it with Tom and Jerry's. It is not for a special occasion or romantic dinner. Add to that the wait in summer, and I'd put it no better than 4th or 5th on my list of places to go.
It once was "the place" among locals, but IIRC, the owner died back about 01 and things have not been the same since.