We went to the Bubble Room in October 2007 for lunch. It's an interesting place with lots of old toys, toy trains, and other nostalgic items that are literally stuck everywhere. Our kids liked it.
It's been there a long time and is an institution. It is somewhat overpriced and the food is okay. It was also musty in some areas of the restaurant.
I think it is one of those places that you will want to go once and then, once you've seen it, may find other places with better food, etc.
Mucky Duck, which is a block down Ande Rosse lane, is right on the beach and has great sunsets and pretty good food.
Green flash, RC Otters both in Captiva are also good. Many others on Sanibel, too.