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One of my favorites in the area is Just in Thyme on route 1, not too far past the turn off to Rehoboth. A little unoriginal, but what they do, they do well. The food is very good quality and perfectly cooked. Open year round, and the ambiance is nice, upscale without feeling too formal.
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Mrs. W. and I had a great meal sans twins at Fish On in late September.
I would also note that several parties did include kids, so it seems to be a good all-ages choice. It's very spacious so there's little danger of kids wiping out a server or customer, as would be the case at many Rehoboth eateries.
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This time of year many restaurants are closed or scaled back until Spring; in Lewes I would steer you to first to Striper Bites or 2nd choice would be Fish-On. Agree that Buttery is overrated and coasting on its past reputation. In Rehoboth, both Confuscious and Cafe Sole are 2 consistant good choices this time of year. Out on the Hwy between the 2 towns is Nage which is probably the most sophisticated and "adult" of the above choices. And you can always start with a good microbew at Dogfish Brewpub in Rehoboth, just avoid the food there.
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The Royal Zepher in Ocean View: It is on my must do list. My friend has been quite ill for several months so we haven't made it there yet.

