Can anyone tell me about these two locations in Florida? Things to do, places to eat, etc.? We are considering a holiday vacation and would appreciate any input. Thanks!

They are close in terms of location, but worlds apart! Ponce Inlet is very small, very quiet, mostly residential - a few VERY casual (but good) restaurants - very low-key. That being said, it is right next to Daytona Beach, so you can go there for nightlife, shopping, etc.
New Smyrna is much more developed and IMHO, a more "college crowd".
One Note: Ponce Inlet does NOT allow driving on the beach, whiel Daytona and New Smyrna do - that can be a deal-breaker for some people.

how has New Smyrna Beach come along in the past year? I was there in March and it was hit pretty hard by the hurricanes and recovering slowly... a few good eateries we used to visit were condemned - bummer. (I am talking about the oceanfront/beaches)

I have not been to New Smyrna Beach since the hurricanes but I found Flagler Avenue to be quite charming. I also really liked New Smyrna Beach. We stayed at a gorgeous little inn on the waterway called the Riverview Inn.

Just returned from New Smyrna Beach. Hurricane damage appeared to be very hit/miss but still very evident in some areas. Riverview Grille was our best meal.

Isn't the Riverview Grille right in front of the Riverview Inn?

is Riverview Grill the one they may tear down soon to make way for condos? or am I thinking of another one. I can't remember the name of the place we ate one night but it was right on the water.

Riverview Grille is right on the water adjacent to the Riverview Inn. The food was fabulous. I'd hate to see it torn down.