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March 2015 Update: The road construction is finished, and the four lane freeway takes you there in about 50 minutes if you don't stop. Getting out of Cabo can be challenging - easiest way is to have a GPS with a Mexico map, as some roads are under construction in north Cabo and you have to detour. However, keep watching for the road number (Hwy 19) and you'll get out of town eventually. In Todos Santos, except for a photo op at the Hotel California, there's not much else except for a few shops, many of which, oddly, are run by American citizens. Ask a local about beaches north of town. To be safe, don't try to find beach roads when you are heading north - wait until you are on your way back, so that you aren't trying to turn left across the highway.
Todos los Santos is a small town about 50 miles north of Cabo San Lucas. It is a great day trip if you have a rental car. It takes about 90 minutes to drive there. As of the time of this writing (December 2011) there is road construction going on which makes the journey a little slow. This road construction may not be completely done until 2013. On the drive, you feel like you're journeying through southern Arizona, as there are many cactus and much desert landscape. It's quite pretty.
Buses (both public and private) offer transportation to/from Todos los Santos, so you can get there if you do not have a car.
In the town itself (drive all the way to the one traffic light in the town, then turn right), you will find the famous Hotel California, as well as shops offering unique, locally created works of art. Much of the art is reasonably priced and will fit in luggage.
The drive itself is very enjoyable and a nice break from Cabo resort life. The town itself was somewhat disappointing, not much historical value nor as picturesque as described in some guidebooks. The theater is an interesting building built in 1944, with nice art deco frescoes mixed in with original tiles. The Mission is a newish looking building with somewhat average decor, nothing special to look at. The hotel California serves a decent lunch on a breezy shady patio in the back, though the mango salsa on the special of the day tasted more like canned warmed up mangoes in cloying sauce than the freak salsa I was expecting. This is NOT the original hotel California of Eagles fame (that is in San Francisco). Many shops selling similar tchotchkes as what you find in Cabo, similar prices, nothing really authentic or indigenous looking. Shopkeeper explained the silver comes from the Tasco region, rest of artifacts from all over, only local artisanal product being furniture. Overall worth the drive to escape the heat at the resort, but not a particularly edifying stop if you were expecting a cultural experience.
On the way back, stop at Cerritos Beach, which is about 10 miles +/- south of Todos los Santos. The road to Cerritos Beach is incredibly bumpy; it really shook the little rental car. NOTE: the road is a little hard to find, you need to keep your eyes peeled. Good news is, once you're on the road, the distance is just a couple miles and the incredible beach will make you glad you made the effort. There is a beach front restaurant/bar, at which the food was very good, and the prices not so bad (note, they may not be able to accept credit card payments).
If you're staying in Cabo, leave town by 900am, which will put you in Todos los Santos at about 1030am, which is roughly when many of the shops open. Stroll around, then go have lunch at Cerritos beach, before returning to Cabo late afternoon.
Went on a great Todos los Santos Day Trip. The company was Panchito.Tour driver was fabulous. His name was Carlos. He gave one of the best tours I have ever been on. He took us on a tour that really showed Mexico not a tourist trap. 10 Stars!