Ok, I must be in the minority here because I love the bahamas. I've been several times and stayed at Atlantis and the Riu Palace.
Great reef shark diving if you do that. They also offer snuba/snorkeling. I want to say it's blue island divers is the outfit. One of the best I've ever used.
The fish fry is great. Twin Brothers has some amazingly fresh fish. It was cheaper than the Atlantis resorts but not what most would consider cheap. Walked from downtown market area and didn't feel unsafe at all.
It's an island so everything is imported and it's main source of income is tourism. Even the places the locals go aren't "cheap"