AC is getting better, but you need to go looking for the better spots. It is sadly true that outside of the casinos and the boardwalk area, AC is indeed quite the depressing place to be. This was actually done on purpose by the many of the Boardwalk Casinos to keep you from wandering the boards or streets. They want you IN the casino and spending money.
If you have to go to the Casinos, the best are The Borgata, Golden Nugget, and Tropicana. The fourth spot is reserved for Harrahs. While gaming is the mainstay of any of the Casinos, you are better off finding something to do at the Borgata. The Music Box (their true theatre) has something going every night 364 days a year (It is only dark on Christmas day) even if it is only comedy. The prices are reasonable for tickets, but the room prices there are eye-wateringly high as we are almost always at 80% or more capacity.
I am unsure of the steel pier (off of the Trump Taj) is still operating or if it will re-open when hardrock takes over. The boardwalk itself has a lot of tacky stores, a few really good candy shoppes, and a few beach style restaurants. The Irish Pub is decent, the Tun Tavern, which is attached to the Convention Centre is good and they do their own brews.
Unfortunately it is cold and damp here right now, Summer seems a month late, or I would suggest the beach. The water and sand are clean and safe, but I can guarantee you will run a small low grade fever that night. The Locals call it "beach fever" and almost all tourists who visit the beach for the very first time get it as your body gets used to bacteria that naturally lives in the sand and water.
That is all the info I can give you though, as a non-drinker I do not go out often and as I almost always work evenings, I don't get to go out to dinner that often, and I am certainly not driving "back to work" to do so.
While they have some decent places, Brigantine (the island north of Atlantic City) and Ventnor, Margate, and Longport (which are south of "downbeach" are bedroom communities and do not offer much in the way of entertainment. Ocean City, the island south is a Dry town and has a very nice selection of restaurants and a very nice boardwalk. Somers point, across the bridge from OC has some of the better local restaurants such as the Crab Trap (overpriced IMHO) and the Anchrorage and all the taverns and quant bars you would want.
In short, if you want to eat well and get entertained without a lot of hassle , go to the Borgata. There is something going on every night and the list of executive chef restaurants is extensive, I just would not stay there unless you like paying $300 a night. If you do stay there, stay in the newer tower the "Water Club" as there a amenities there you can ONLY use if you stay in that part.