The other person is right. You are out in the middle of no where. I just came back on 2/27, and met some people from Canada and they were staying there. It seemed like a nice place. You should be able to trust the food and ice there. I didn't drink water, other than what I bought anytime I was there, including brushing my teeth.
As for things to do, there are tons. Make sure that you go to the main beach in Playa del Auga, it is the most popular. If you go there eat at El Pacifico. They had awesome food!! I ate there 3 times. If you want to rent some beach chairs there, as for Pedro, he speaks English. Not alot of people on the island speak it, so it you don't know any make sure to bring a phrase book. If you want to go on any tours there are lots of travel agents booking all along the beach. They will come up and ask you while you are on the beach. Isabella Tours down from El Pacifico, had a deal going where you could take a jeep tour, snorkle, and the trip to El Coche, for only $99. Really cheap!! I didn't go throught them, for the tours that I went on, but when I go back I will. El Coche is fun, but when I went I was stuck with 8 German people that spoke no english, so wasn't as fun as I expected. I also went on a Jeep tour and had a great time!! I highly suggest that. Isabella tours was the place where I found had the best place for exchanging money--2500 Bs for $1.00.
I would suggest that you bring cash along, it is easier to exchange. Also if you can't do math really good in your head a calculater would help in being able to figure out the exchange rate.
As for night life, on Playa del Auga, Woody's was a great place to be over the weekend. Thursday's is ladies night, so for us it was 5,000 Bs to get in then free drinks. The Hut Spot off of Calle Miragua had a live band on Fri and Sat, and was ok. Otherwise if you take a cab in to Porlamar, I have heard that Kamy Beach, and Senior Frogs is the place to be. I never made it there, as I was just to tried from being on the beach in and in the heat all day.
Hope this helps you out. Have fun!!!