I have heard that the food has improved, but it used to be SOOO bad, that I hesitate to even consider it again.
Agree with MissJ, Columbia Center has a great observation deck, although it is not outside.
http://www.skyviewobservatory.com/
The one nice thing about the Space Needle, is the location in regards to other things to do. Chihuly is great day or night. Just 2 total different experiences.