Do you want a vegetarian restaurant or a restaurant with a vegetarian-friendly menu?
As a vegetarian of 15 years, I agree that vegetarian restaurants are by and large terrible. However, there are a good number of upscale restaurants with vegetarian tasting menus (though I've not been to either I've heard Patina in Los Angeles, which has a vegetable tasting menu, and Madeline Bistro in Tarzana are good). There are also your regular restaurants that have a mix of vegetarian and non-vegetarian items. If you provide a better idea of what you're looking for, we can probably provide better suggestions.