Yes, this area has been gradually reviving and gaining in hipness over the last 6-7 years (Neue Zürcher Zeitung is a little late, but I'm actually pretty impressed that they'd mention the U Street Corridor at all!) It is still slightly dicey later at night but should be fine on a crowded summer evening--any evening Thurs-Sat will be no problem. Daytime is also no problem.

Rouge hotel, by the way, is not really part of this neighborhood although it's not that far away. It's one of the very few (possibly the only) boutique hotels in DC.

To the restaurant recommendations I MUST add Ben's Chili Bowl, 1213 U St. NW, a DC institution since 1958. This will be a refreshing antidote to the excesses of trendiness and health-consciousness that have begun to plague the neighborhood.

I also like the Chi-Cha Lounge (1624 U St. NW)--a lot of couches to sit on, cocktails, and Peruvian food--but it is definitely in the hipster category. A fairly young crowd.