The Fountain Square area is beautiful at Christmas time and we went to a piano bar in that neighborhood when we were there. (I cannot remember the name.) I think you're within walking distance at the Cincinattian. Also, right across the river is the Newport area. There's a lot of shopping, restaurants, and things to do in that area.
ETA- If I remember correctly, there are not a lot of nice, sit down restaurants near Fountain Square. There was a brewery restaurant, but it was packed and we didn't want to wait, so I can't comment on the quality of the food.