Has anyone mentioned the Great Eastern?
Little pub with dusty books all along the walls at the bottom of Trafalgar Street (same road as the Prince Albert but at the bottom of the hill) - really nice for a quieter drink. Almost opposite that is a pub called the George which does totally veggie (and rather nice) food. Those are usually my two haunts when I go down there.
In re: to cafes, the North Lanes underwent a bit of an explosion of organic cafes a few years back. However, if you find that sort of thing a bit pretentious there's a great (and busy) little cafe called Kensingtons on a little street called Kensington Gardens. I think from Trafalgar street you walk almost to the bottom of the hill and right along Sydney Street, and then when you get to the end of that it's the road continuing opposite, a wee bit to the right. If there's room you can sit on the roof terrace and watch all the people wander around below. Note, there are two places with roof terraces on this street, and you want the one at the far end of the road (if you're following those directions) rather than the one nearest you.
Kensingtons is next to a shop called Pussy which is overpriced but usually worth a peek if you like kitsch stuff at all. And there are a fair few kitsch shops in the North Lanes.