The dining experience is very different today from what I remember 10 years ago (the last time I spent more than a couple of hours here). Since then the Russians have moved in wholesale and thrown a lot of cash around, generally tidying the place up and demanding a bit more than the 'mom and pop' tavernas of old. Yes, those places still exist and some are very good, but they are out in the sticks (including Polis in Aki village), not in the city. Places on the Aki Strip like Chris's Kebabs only exist because RAF Akrotiri wants them to. Limagrad now demands a more cosmopolitan scene.
Don't believe what you read in the Economist; there is plenty of money to spend on cool bars and fancy restaurants, if my night out in Old Town on Friday was anything to go by. The reason the economy is fragged is because tax evasion is the national sport.