Just back from a week in Quito and a week in the Galapagos. While I agree that Quito is not necessarily the haute cuisine capital of South America, we did find one place that we loved, La Casa de mi Abuela.(1649 Juan Leon Mera, tel.256-5667) It is an unpretentious steakhouse located a block and a half from the JW Marriott hotel on the northern edge of Gringolandia. We ate there twice and had one of the best fillets that we have ever had. A previous post compared it favorably to the steak at Peter Lugers. As a native New Yorker who has eaten many times at Lugers, I can honestly say that the steak was better in Quito. Dinner for two with a cocktail before and a glass of wine/beer came to less than $50. A couple of caveats, if the owner is not present, the staff's english is not very good, cheerful, but not very good. Also, go with the special, the giant fillet of beef for 10.50., other items are not always available.
We ate the first night at the hotel, expensive and not great as we got used to the altitude. The found a swinging bar scene for happy hour around Colon. Ate the last night at the Turtle's Neck, an ersatz English Pub around the corner from the hotel. A note to all ...taxis are cheap and unless your walking a block or two, its safer to take them at night.