Agreed!
This area has been up and coming for several years now. Chi-Cha Lounge has been around long enough that it's not THE hip place to go but still a worthwhile destination. There are lots of bars, clubs, shops and restaurants in this area. As for it's safety - it boarders some of DC's far less desireable areas but, as is true with any big city, a little awareness and precaution go a long way. I doubt I'd feel nervous unless it was very late at night and I was alone. An ounce of prevention as they say...
This U St. area is the part of DC that is experiencing a population growth for the young and urban who can not stomach the thought of moving out to one of the many soulless suburbs of the Nations Capitol. They have "outgrown" Adams Morgan's nightlife/lifestyle (party until 4 a.m. in the "hippest" part of DC) but still want that DC-neighborhood feel. Georgetown and Kalorama are too pretentious for this crowd (or they can't afford it). Many of the older buildings are being converted to loft style apartments and condos to promote that urban lifestyle.
IMHO, U St. is certainly an area worth checking out when in DC but it's not worth a special trip. Nor would I go out of my way to stay here. Most visitors come to DC and spend the majority of their visits in the vacinity of the Mall (Smithsonian museums, the Capitol, White House, Washington Monument, Lincloln Memorial, Jefferson Memorial and the various war memorials: Vietnam, Korea, WW-II). They may also check out Georgetown and the Dupont Circle areas.
IMO, once you've been to DC and seen all those "must sees" places, you would be wise to check out places like Cleveland Park, Eastern Market, the Cathedral area in addition to the U Street corridor.