Cimbrone,
We are two couples--Boomer ages, so we are tolerant of many lifestyles. El Panchan is definitely on the "hippie" radar. I think many places have been ripped off by the "young-uns" so that they have instituted a "pay-first" policy to get a taxi. We certainly didn't look like we were going to stiff a cab and our destination was an up-scale resort, but we were subjected to the "pay the bartender 50 pesos and we'll call a cab" policy. I stood right at the bar to make sure the cab driver was paid and we were on our way. The food was great--and drinks cheap--live music was nice--not too loud, but lively. I wouldn't stay in Panchan but certainly liked going there for dinner (we went twice--both times to Don Mucho's). As for tour recommendations--our original tour, booked through latindestinations.com then sub-contracted to two other companies--I can highly recommend Nativo Tours, and especially two guides: Luis and Marco (who also works with Alex). Contact them at: www.nativotours.com or the owner at [email protected]
I would go with this company anytime and, in fact, are considering them for next year's trip.
I wouldn't be so concerned about the mosquito related diseases--we actually had very little trouble with the bugs. Contact me with any other questions.