Cabo San Lucas has turned into a great resort destination. It used to be simply a party place (and it still is), but now it offers top-quality resorts, great fishing, decent beaches, and the "south-of-the-border" relaxation.
Make sure to visit Cabo Wabo, El Squid Roe, and the Giggling Marlin when you go.
Rent a fishing boat for a day, and tell the driver you want to see dolphins and catch tuna and blue marlin. It's a blast.
Here are some pictures of the Villa La Estancia hotel, the Galago's choice for Cabo San Lucas lodging: