Marking one of the corners* of Cape Cod, most people go to Woods Hole in order to go somewhere else - i.e., Martha's Vineyard. Woods Hole is where the Steamship Authority ferries people and vehicles to Martha's Vineyard, as well as to Nantucket. As a result, the traffic and people congestion ebbs and flows according to the ferry schedule, and some of the businesses specifically are catering to that. The other thing you can't miss about Woods Hole is the oceanographic institute that takes up most of the town.
Technically a village in Falmouth, Woods Hole can be a destination in spite of its nature as a transition point.
* the Cape Cod Canal, Chatham and Provincetown make up the other three "corners".
Landfall - popular seafood restaurant on the water, cool atmosphere
Shuckers - outdoor seafood restaurant next to a boat dock
Captain Kidd - seafood restaurant
While these places may have food too, we think of them more as a place to get a drink.
Quicks Hole Tavern - bar to grab a drink while waiting on ferries or for a table elsewhere