I think it depends what you're feeling like. It is quite nice to have a peaceful evening with some nice food, and then may have a Metaxa in a bar. I do get a little bored with the dancing and barbecue lighter after a while. Unlike my experience of Sidari, where the food was awful apart from Chinese (which I can get 2 minute's walk from here) or Indian (1 minute's walk), San Steph has some very nice places to eat with a variety of ambiances.
There seems to be a view that you get lots of authentic Greek food in SS. I happen to think this is not *quite* true - it's pretty much tailored to the tourist trade. If you want the real village cooking you have to go to mountain villages or maybe Gavdos. Seen any goat in SS? Seen a real 4 hour meze?
There is variety, and they all care. Moussaka here, fish curry there, pork medallions in Mythica, bream out of the sea in Yannis' - it's all part of the way SS operates. I think this variety helps, and is part of the reason people go back. It's not the cultural capital of the world - it hasn't got Hellenic or Byzantine ruins - but what it has is friendly people trying to carve out their distinctive food niche. Good luck to them!