Thanks all for your suggestions. I'm going to agree with pim and Barry in that Plaza San Andrés and the Cervecería San Andrés seems to fit all the requirements as it's well located, less touristy, good space, less-expensive food, good-sized terraza, and looks nice in the photos.

Cervecería de San Andrés
Plaza de San Andrés, 4

SEE QDQ.COM MAP LOCATION AND PHOTOS HERE
[img]http://fotos.qdq.com/1/c/tbf/user=esphoto;uri=n0uWXUXXmKJH4DPDTyssLuRIjbA3bQ5FPtOx5ffqBX9Y7sU5OsTLY50GaHLVPlgoxM2ej7Da6Ao=[/img] [img]http://fotos.qdq.com/1/c/tbf/user=esphoto;uri=n0uWXUXXmKJH4DPDTyssLuRIjbA3bQ5FFJYdRRauiJxGpQt7/4j+SnOqi9NPVOwXoDfopk+aK2g=[/img]