Niagara Falls Canada on a budget
If you can get over to Lundy's Lane (not sure if the PeopleMover goes that far), I would actually recommend the Flying Saucer restaurant. I know it's a total dive, but it's fun, cheap, and filling. They have $3 breakfasts with real eggs and bacon, and surprisingly tasty burgers at lunch for $9-10. Decent fish and chips, too. Plus the place is kind of a hoot - the interior is really built to feel like you're inside a UFO... or at least the 1950s diner version of a UFO!
I recommend Sui Sun restaurant for Dim Sum. It is on Erie St (near Bridge St and the greyhound station). It is cheap and good! Also Simon's Restaurant for breakfast around the corner at Bridge and River Sts. It claims to be the oldest restaurant in Niagara Falls. Affordable, friendly, and very kitch.
Sui Sun Restaurant
4568 Erie Ave, Niagara Falls, ON L2E3N3, CA
Not a gourmet option but if you go to the old casino in the food court area there is a "falls and the firkin" with a semi decent view of the falls. The pricing there is the same as my local Firkin in Toronto.
Not the greatest, but not the worst.
Also The Keg is only slightly more expensive then in Toronto, I'd say its one of the best bets if your looking for a nicer dinner.
I hate buffets personally, but if you get a free casino card (Takes a swipe of your drivers license thats it), it comes to something like $18-$20 for the buffet and includes softdrinks. Tipping isn't really neccassary.
Hope this helps, Niagara Falls is such a tourist trap.