mm.. we were thinking of going to Cabo actually. We found some cheap all-inclusive packages. (Presidente in San Juan del Cabo I think). I guess if we got sick of the food they have there, and had to eat out at other restaurants, then the expensive food thing would be a problem.
Check the Western Regina in Cabo. If you really want my help, my co-worker can get discounts. Call me, you have mi nombre. :)