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Is Prague really that bad?

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We are going to be in Prague for a few days in October. Last evening, we had dinner with friends who love Prague and have been there several times. Even as they were talking about how beautiful it is, they went on and on (and on, and on) about how everyone is out to cheat tourists in Prague. Basically, they told us not to trust the taxis. They said that if you don't speak Czech restaurants will charge double. They also mentioned that pick pockets are everywhere. This seems to be information that is also reflected in quite a few guidebooks.

Based on all of this information, my husband is thinking he doesn't even want to spend any time in Prague at all (though we've already booked our flight to start out there). Are things really that bad in Prague? Is it worse than other cities in Europe?

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