Part of the reason we decided to go to Cabo on this trip is because we thought we would be guaranteed nice weather there in case the weather in MZT was bad. But it actually turned out the opposite. Only one of our three days in Cabo was nice enough to sunbathe in, and even then it was windy and chilly. Downtown Cabo San Lucas is much bigger now. There are tons of t-shirt shops, and new construction sites are everywhere.
Most places accept pesos or dollars.
We had no problems getting back to SFO and through Customs. As we found out by the end of our trip, everyone that does anything for you expects a tip. It really helps to know conversational Spanish. The three years I took in middle school 12 years ago really came in handy. Most Mexicans speak enough English to get the basic ideas across.