Palomar is a good location. One block east is Pizza Paradiso, great pizza and good beer (ale) on tap.
Georgetown is an easy 20 minute walk west. P street west into Georgetown takes you through a beautiful residential area. If you want the Georgetown scene, you then walk south to M street, the canal just below, and the waterfront. It would all be a great walk for a few hours. Georgetown is also an excellent place for better restaurants, arguable better than most that are near Dupont circle. Dupont Circle also has a red line Metro stop. It is a great way to get to many places downtown.