Restaurants - we like Tina's, Ranchers, Anaheim Jacks, Broken Arrow (at Inn of the Mountain Gods), Cattle Baron, Rio Grande to name a few. As mentioned above, Cafe Rio is also great. Ranchers is the only one of those that takes reservations. Everything is going to be crazy busy this week (locals call it Hell Week) so be prepared for long waits.
If FIL is looking for a bar with live music either if the Downshift brewing places would be best bet, but the Riverside location is much nicer than Hidden Tap one. They have wine and cocktails if beer isn't his thing. Check their Facebook for info on when/where they will have music.
Wingfield Park has a nice free walk through Christmas light display. They also have ice skating there.
You can take horse drawn carriage rides through Upper Canyon which tends to have pretty good residential light displays but $$$ for the carriages. Can also just drive though upper canyon. Take Sudderth west until it ends at traffic circle, then take Main St as far as you can.
Inn of the Mountain Gods is a much better casino than the one at the racetrack. They have restaurants and an arcade so it is a fine place to take kids while parents take turns gambling.
Snow tubing area (Winter Park) can be a fun place to kill a few hours with the tubing and mountain coaster.
Flying J Ranch has a Western themed Christmas concert / dinner show but will sell out.
If you like wine, highly recommend Enchanted Vine. It's the production facility for Noisy Water Winery, they have beautiful grounds and is a nice spot to hang out on a sunny day. Kid friendly too.