Palo Alto watering holes and/or steak houses?
I think there may be only one true steakhouse in PA and that is Sundance on El Camino near Stanford Avenue. It's decent but not spectacular. Wines, especially reds, were way overpriced as of my last visit ... several were more than 3x retail. Sundance also has a separate bar which draws a good crowd. Watering holes depend on your age & what you are looking for. For "scene" type places, Nola's downtown seems popular with the under 30 clientele, La Bodeguita del Medio on California Avenue draws a slightly older crowd. My favorite dive bar is Antonio's Nuthouse, also on California Avenue.
Couple of other thoughts for a good steak or piece of meat...
I think you mostly have to take a pass in PA though Zibbibo does have a great skirt steak that is way worth trying and, of course, they have a nice bar.
Beyond that, the two places that we drive to for steak are either Harry's House of Prime in Menlo on El Camino or the Los Altos Grill (formerly Bandera) in Los Altos.
Harry's has had mixed reviews on this board. I can tell you the few times we've been we've had the ribeye and it was great. They also did a great job on the dirty martini's though I don't think they actually have a bar bar (if memory serves.)
Los Altos Grill right off San Antonio does have some great steak and a great bar. I used to get their Millionaire's cut when it was a special... to die for. I haven't been in awhile but totally worth the drive. Their grilled artichokes, corn bread, roasted chicken and potatoes are all wonderful too.