By and large, Sharm is pretty safe - lots of security with all those "peace" conferences, etc. etc. for one thing.
Sharm Waterfalls has reasonable quality food - but it's fun to eat out. One place with great sunset views and pizza, kind of atourist - caravanserai atmosphere is
El Fanar (the lighthouse) on the cliff at Ras um Sidd, not far.
Diving is OK, but not many dive ops have dive safety down pat, so be choosy, please.