Food: Pretty decent petiscos (tapas)! The tasting menu is the thing to do here. You get to sample big portions of several traditional petiscos with unlimited wine or beer for 25 Euros. It is a lot of food so come hungry.
Wine: It's a house white and a house red. Don't ask, just drink. And don't be afraid to ask for refills.
My take: It's touristy but fun. It's not really about the quality (although the food is totally fine); it's about the indulgence. It's also crowded and there's a line outside anytime after 7:30pm. Go around 7 to get right in. More on Taberna Portuguesa.