Lake George is like a desert for foodies. Since you mention upscale, you might try some of the restaurants at The Sagamore. You can also take a dinner cruise. It won't be great food, but the views are great.
what is it about areas like that? freeport, ny not far from jones beach is like that. someone with a real chef could do so well but everyone settles for what's there because of loaction, location, location, near the water.