On our July Trip, we did actually spend a day at Magen's Bay and it was beautiful. On the first morning of our charter, we found out we had to get off the boat due the approaching storm, so I scheduled our flights for the next day, packed up all of the provisioned booze I could fit into our coolers and spent the day there.

I had heard the same thing about anchoring around Lime Out and will concur that it looked tight - there were lots of day trip boats around as well. So we took another approach. We went over to Hurricane Hole (~1.5NM away) grabbed a ball there and took the dinghy over. However, we did have a 20 HP dinghy for the 2 of us and conditions were calm.

In Cruz Bay, we ate at Beach Bar and High Tide. Can't beat the location, right on the beach. But I know there are plenty of other good options. Make sure you have 2 good flashlights coming back at night. We stayed at Honeymoon and it is not a short dinghy ride. Again, we only had 2 of us. Saw 7 or 8 going in a 9.8 HP dinghy. I expect it was wet and slow.