We just returned from our second trip to VB, and have already tried to book another trip for July, but it was full! We love it there...it is such a beautiful beach town! It's not the place to go if you are looking for crowds of people and lots of "action". But, if you are looking for relaxation, family fun, and beautiful coastal scenery, you've hit the nail on the head with VBR!
This was truly a "beach vacation". We were so content to just enjoy the resort pool and the beach every day! The resort has lots of activities planned for families/children each day. You will receive a schedule upon your arrival. If you have young children, you will want to schedule them for one of the "Unbirthday Parties" during the week. Each child within the appropriate age is allowed to attend only once during your visit. My six year old son really enjoyed it. We also attended the campfire sing-along/s'more making event. Wonderfully executed and a great family night activity. The swimming pool is THE place to be each day, with slide races, a putt-putt coarse, scavenger hunts, and other activities. It's also a great place for relaxing with your fave beach read. Unless you have small kids, like us.
The surf at the beach can get a little rough for young kids, old ones as well at times, so use caution. Just use your judgment - if you are family of strong swimmers, you'll love it! Body surfing is great, if you don't mind getting beat up a little!
If you enjoy sight-seeing and shopping, head to the beachside business district of Vero Beach. Several beautifully quaint, upscale shops, restaurants, etc... make for a very nicy day. Take a tour through The Driftwood Inn - very interesting. We also enjoyed driving down some of the beautiful streets lined with Live Oak trees in the Riomar subdivision, and imagining we owned one of the beautiful cottages just yards from the beaches.
Other possible activities:
Sebastian Inlet State Park - fishing, kayaking, surfing, cycling, hiking, biking, camping, picnicking, fishing museum
McLarty Treasure Museum at Sebastian Inlet State Park

National Navy UDT-Seal Museum - Ft Pierce
Indian River Citrus Museum
Vero Beach Museum of Art
Piper Aircraft, Co.
- We did not visit any of the above this trip. However, I used to have family living in Vero, so I visited often as a child and enjoyed all of these things. We will definitely be taking our boys to some of these places as they get a little older. Right now, our 6-yr old would have enjoyed the Treasure Museum, and the Navy Seal Museum, but we didn't have the time (or the inclination!) to get to them this time.
As for off-site dining, we are at a stage of life where we look for "kid-friendly" dining with our two boys, ages 6 and 1.

So, unfortunately, I am unable to make fine dining recommendations. Maybe in a couple years.

Some of the casual (family) restaurants we tried, or that we hoped to try but didn't get to, included:
Orchid Island Pizzeria: This was my fave! RIGHT next door to the resort, immediately across from the Wabasso Bridge. We ate takeout from there two nights during our five night stay...it was delicious! So convenient, too..walking distance from resort. We enjoyed the resort so much, honestly, we really didn't have a great desire to leave it too much, so this was convenient and hit the spot for our Italian tooth!
Capt Hiram's - was recommended, but we didn't get to it. Located north in Sebastion.
The Lobster Shanty - I had eaten here as a child 30 yrs ago, so wanted to go back to see what memories were stirred. It had changed quite a bit, but for a family with young ones, it was a good meal at an extremely reasonable price. We had a window seat where we enjoyed watching the dolphin swim only a few feet away in the intracoastal waterway. We've seen mixed reviews on this, but we must have hit it on a good day.
Mulligan's - Oceanfront, very casual, with bar. Cute atmosphere, great service, good food. Located in the business district. We happened to hit on St. Patrick's Day and it was wild!

The Lemon Tree - Was highly recommended, but we didn't get to eat there. It is a tiny, quaint little place in the business district. Looked wonderful, but the baby was not cooperating, so we didn't get to go.

Next time for sure!
Waldo's at the Driftwood - we were told this is "where the locals go" to hang out for drinks and their seafood fix. Didn't get to try it out.
Tiki Bar & Restaurant, Ft Pierce - if you are up for a 30 minute drive down A1A, try this place out. Very casual, styled like a cute Tiki Hut on the waterfront in downtown Fort Pierce, on the Indian River. Great service, food was fun and casual. We enjoyed it.
I hope some of you find this helpful!