Ive made many many many trips to prague and the czech republic the past 5 years (as my wife is from there). I remember the first time i went; there wernt that many tourists and food/drink was exceptional and inexpensive....finding anything in english was quite scarce. Unfortunately it seems many people decided to visit after hearing all those who came back saying how cheap prague was. Now adays, i would consider Prauge on par with most Western European cities for prices/amenities/tourism; especially in the summer. (be prepared for a lot of tourists). I suggest seeing Prauge, of course, but then heading out to some other cities where you can experience a less tourism-driven culture experience. (Karlovy Vary, Hradec Kralov are two examples).
If you want a cheap, eastern european city, try Kiev.
cheers!!!