Stay outside of FWB if you're looking for a hotel. I think you'll find Navarre or Okaloosa Island are going to be optimal in terms of scenery, driving distance and safety.
There are a smorgasbord of good restaurants in and just outside of FWB, just fire up Yelp and sort them by ratings, you'll get a pretty good idea what to try. There is a strip of restaurants on the boardwalk of Okaloosa Island, but I think they are for the most part overpriced for the quality of food they serve, which is meh. It's a tourist dive, so take it for what it's worth.
ETA: The Hampton Inn and Suites in Mary Esther off of Hollywood Blvd. may be a good choice. It's pretty much brand new, and close to FWB. Also, it's not stuck in the middle of the city in all the hustle and bustle, and it's right next to the mall. I imagine it's a relatively safe area, I see Sheriff deputies hanging around in that area on a pretty regular basis either parked (probably filling out paperwork or something), or patrolling the mall area.