Part of the point of Taiwan is the crowds. It's a small island with a large population so everything is crowded. Coming from NY, you should understand that. If there is a nice restaurant in NY or LA and you try to go without a reservation, how long is the line? Taiwan is no different.

Taroko gorge is beautiful as is much of the coastline in Hualien. I took a train from Taipei to Hualien and it was full, but nothing crazy. Had a private tour, just driver and my wife/son to Taroko and a few other spots, I think it was cheaper than taxi. Just had to prebook. I've always been able to find decent food spots just wandering around; food courts in Taiwan are no better than food courts in the US. I typically just see where there are lots of locals; usually ends up being a dive, but food is often good. But I could see the language barrier being an issue. My family is from Taiwan, so I speak Mandarin and can get around (can't read though). I've still been able to use the Chinese language kiosks at many places even though I can't read it.

I will agree that the crowds at a lot of tourist sites can be insane, but I always figured I'm part of the problem so I can't really complain.