Pacific Grove, Pacific Grove
Downtown Pacific Grove is a quaint area which is easily walkable. It is also only 3 blocks from the beach area. There are many stores, restaurants and coffee houses to fill your time. Many are designed in that classic victorian 'San Francisco' style. You can easily kill an afternoon here. There is a movie theater, but very, very limited nightlife after that. This is pretty much Mayberry USA. Lighthouse Avenue is the main street for businesses.
If you don't want to do the Seventeen-Mile Drive, here's an alternative: Ocean View Blvd, a 'three-mile drive' that offers equally spectacular scenery. The road winds along the north coast of the Monterey Peninsula, with many great stopping points where you'll find amazing views. You can get out of your car just about anywhere and take short walks along the rocky, rugged coastline which lets you appreciate the true beauty of Pacific Grove. After passing Point Pinos, the blvd becomes Sunset Drive, which allows equally spectacular views.