Palm's Delight is a totally "local" restaurant right on the water at Carrot Bay and is delightful! Service is friendly and the food is delicious, home-cooked local fare. Prices are incredibly reasonable. (My entree was $18 and for a similar dish at Pusser's Landing the price was $32. Huge difference.)
As with every restaurant we tried, you must remember that you are on "island time" and prepare yourself mentally for that. I read some reviews on Trip Advisor complaining about slow service and having to get up to get a drink for themselves at the bar. Something like that does not bother us. If you're looking for Four Seasons service, this is not the place, nor is it the island for you.
This was one of my favorite meals of the week and I'd highly recommend it! And don't miss the homemade key lime pie!