KIX Rinku Town ???
 

Some pilots at my airline are getting tired of the bus ride from Osaka's Kansai airport into downtown Osaka for layovers.

They are pushing to stay at the ANA Hotel in Rinku Town (just over the bridge). When I worked at Vietnam Airlines, we stayed nearby at the Washington Hotel. I did not like staying there as I never found anything to do around Rinku Town.

Have things changed for the better? Are there any good resturaunts, bars, or attractions around there now?

There are some restaurants in the Rinku Town Premium Outlets, very close to the hotels. There are also quite a few local style izakaya style (Japanese pub food) places quite close. A lot more people live there compared to a few years ago so restaurants are popping up. An amusement park is also being built.
There is a really big mall three or four stops away on the Nankai train, or a medium sized mall one stop away on the JR train. Big DIY store near there too.

Bar near Osaka Airport
 

There's a great bar near Osaka Kansai Airport called Takadaya. It opens until late. Not sure if they have a website. If anyone has info please let me know.