The best food around is at New Sammy's Cowboy Bistro in Talent. Chef/co-owner Charlene Rollins trained at Chez Panisse, and while her food is gourmet-quality, it's not "weird" gourmet -- just top quality ingredients cooked well. Prices are quite reasonable, too, especially for their lunch. We've enjoyed incredible steaks, lamb, pastas, etc. Hubby Vern has assembled perhaps the best wine list in Oregon at bargain prices. I think he has a full bar as well. Check their TA reviews and pictures to get a good idea of their menu offerings.
A little lower on the culinary scale is the Black Bear Diner in Medford. The food is not bad, however, and portions are absolutely humongous! I had a "light Portion" pot roast at another Black Bear in Yreka last week and it was more than I could finish. They also serve drinks.