Finally! After having to start this book the past few years with the announcement that San Francisco is still recovering from the repercussions of the dot.com crash, the terrorist attacks of September 11, 2001, a dramatic influx of new residents (up 13% since the '90s), and the general economic strains of 2002 and 2003, there's great news to report: San Francisco is definitely on an upswing!

No indicator better defines the city's mood than the beloved local restaurant scene, and after a rather boring couple of years, during which our dining rooms played it safe, closed, or cut back while awaiting more freewheeling times, it is smooth sailing once again. Eateries all over town are now abuzz with chatter and the clinking of wineglasses, and new and exciting restaurants are popping up faster than you can say "Exactly how long do I have to wait for a reservation?"

Sure, even during harder times, the City by the Bay was still a fantastic place to visit with all the classic offerings: stunning bay vistas, Victorian architecture, swank boutiques, killer restaurants, walkable beaches, those oh-so-charming cable cars, the trademark dash of liberalism, and only-in-San Francisco style (remember the gay marriages of 2004?) -- all tightly tucked into about 7 miles squared. But for us locals, the change is obvious and very welcome. The city feels exciting again.

So, what can you expect from the country's most romantic European-style city, which was founded on -- and still revels in -- the pioneers' boom-or-bust lifestyle? Whatever your heart desires! Like an eternal world's fair, it's all happening in San Francisco, and everyone's invited.

Politics of the City Today -- Shaken but not stirred by the Loma Prieta earthquake in 1989, San Francisco witnessed a spectacular rebound during the 1990s. The seaside Embarcadero, once plagued by a horrendously ugly freeway overpass, was revitalized by a multimillion-dollar face-lift, complete with palm trees, a cable-car line, wide cobblestone walkways, new restaurants, and a skating, biking, and walking promenade. SoMa, the once-shady neighborhood south of Market Street, exploded with new development and became home to the Museum of Modern Art; the beautiful and attraction-packed Yerba Buena Gardens; the überluxurious Four Seasons and W hotels (and allegedly the St. Regis in 2005); a slew of hip clubs, cafes, and condos; a new baseball stadium; and, most influential, dot.com companies. And the tourist and shopping mecca Union Square got a gussied-up central plaza.

But what comes up must come down. And in San Francisco, it came down harder than Marina District homes on landfill during an earthquake.

When the Internet industry bubble burst, which was evident by spring 2000, it left serious damage to San Francisco in its wake. Contrary to the previous years' soar in population, rental and housing prices, and salaries, it was unemployment, commercial space availability, and dismal economic forecasts that were hitting new highs.

San Francisco definitely bore the brunt of the recent economic hiccup, but, not surprisingly, the city founded on the boom-and-bust mentality of gold seekers survived the experience just fine. New businesses slowly filled the dot.com office spaces, the Ferry Building Marketplace and its Farmers Market became the city's gastronomic Disneyland, and waiters who fled the restaurant industry for high-tech jobs returned to the dining rooms and resurrected the recognized importance of excellent service with them.

Of course, San Francisco still has typical big-city problems -- and then some. Homelessness and panhandling have gone largely ignored. Visitors new to the city will be surprised by it's dirtiness in some areas. Those with enough funds to buy a spacious home in most parts of the U.S. can't afford a one-bedroom condo here. Rental units are still expensive enough to have changed the city's demographics: Artists, young transplants, and others seeking an alternative lifestyle can no longer afford to move here and sustain their lifestyle. Parking is beyond a nightmare, even in the outer neighborhoods. Public transportation is embarrassingly inefficient. Congestion and impatient drivers make cruising the town an anxiety-ridden and very slow ride.

But the city's in good spirits -- especially since electing Mayor Gavin Newsome in 2003. After barely settling into office, the young (and media savvy) mayor created international controversy and heightened Bay Area pride by allowing gay marriages in San Francisco. It didn't take long to be overruled by the higher-ups. But not before Mayor Newsome won the respect of locals, many of whom see alternative lifestyles and equal rights as trademark San Francisco, at least in theory if not in practice.

As a whole, San Francisco is doing just fine. Its symphony is in the black, restaurants' cheaper prices (lowered during harder times) and new exciting destination haunts woo locals to dine out, and though many of the once instantly rich residents lost it all in the stock market, many argue it's been a good thing for the city. We needed a little reality, not to mention elbowroom for those making under six figures.

Anyone who remembers the old, liberal, truly progressive, and funky San Francisco knows those days are long behind us. But even without the hard-core alternative edge, San Francisco rightfully retains its title as Americans' favorite city destination.