Haven't seen this topic addressed in a while and tickets to Cabaret prompt me to ask: is there anything worthwhile around Arena Stage?
Pier 7, right across the street, is not wonerful, but is certainly acceptable.
Just a couple of blocks further on the waterfront is the Mandarin Hotel, and Sietsema's newest 4-star restaurant, CityZen.
The real secret is that you can eat at the bar for a lot less money with the same food!
Jenny's Asian Fusion is pretty good for the usual American Chinese fare, plus some inventive entrees (I had a mushroom pastry thing there that was good). The rest of the SW waterfront places have the reps they deserve.
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