Yes fantastic spot - great area of Sydney to visit and stay in... used to stop in for a drink on the weekends after a wander through the rocks markets...
Aus has a remarkably good brewing industry. Forget the VB/XXXX/Fosters etc, the "boutique" breweries are superb, well the ones we found were. In particualr, if you ever find any "Little Creatures" beers (from Freemantle), give them a try, their Pale Ale is superb.