There is a whole lot to do, even within walking distance. There are all the Pine street bars and restaurants and cinema around the corner. There is the Pike http://www.thepikeatlongbeach.com/ and it's a short drive over to the Queen Mary and I think they still have a Russian sub there you can tour. There is a water taxi to take you to Belmont Shores instead of driving. Lots of nice dining and shopping there.

I don't know about any free parking nearby. I prefer the convenience of self-parking underneath the hotel.