Bumping this up.
There are tons. Try Acqua Pazza at the River. It's always good. A very casual local favorite in Palm Springs is Tyler's for burgers and diner style fare.
Acqua Pazza is good. It has a sister restaurant in PS called Lulu.
Upstairs on El Paseo street is Pacifica Seafood with a nice view. Cork Tree in PD. A real nice setting for happy hour drinks and snacks is the patio of Jacalope Ranch.A very casual breakfast or lunch is under the date trees at Shields.
There are taco shops around the valley, that you will never see tourists in. Just locals that like great inexpensive food.
For burgers and seven day a week happy hour, Burgers and Beer.
Blu Ember at Ranchos Las Palmas is very good! :)
I love eating at Destert Willow and watch the golfers.
Great food at a reasonable price. But Tommy Bahama's of Pacifica is wonderful as well.
We like Shame on the Moon in Rancho Mirage for dinner.
As everyone says, Aqua Pazza, outside by the water features, when visiting the River Entertainment Center.
Usually locals don't go to the restaurants in hotels. Hole in the wall taco shops is where you might find them. We like the original small Las Casuelas at 368 N Palm Canyon Dr. PS, not the fancy newer one down the street!
Favorites are the patio at Cork Tree in PD.
Pacifica roof top dining is excellent.
Sammy's Woodfired Pizza & Grill
Sherman's Deli and Bakery
Thanks to all the responses and links!!
I would second the Acqua Pazza, was there a week ago and it was wonderful
We ate at Lulu, based on recommendations online, backed up by a local (a receptionist).
They have a deal for about $15; you can pick your three courses (salad/appetizer/soup, main course, dessert) from a tantalizing list. Everything was delicious.
We had a good view of the street for people watching as well. Very nice place overall.