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You simply must visit Bondi Beach at some point during your stay. Hee you will find the archetype for Australian Beach - a beautiful long quarter moon of sand wedged between two rocky headlands, covered with the beautiful people, tourists, locals, kids and leathery old men - many of whom have probably spent their whole lives within cooee of the place.
When you tire of the surf and the sand, hit the strip behind. The streets are crammed full of cute cafes, bookshops, resturants, and clothes shops. And check out the local 'Bondi hippies' (translation: overtly laid-back and beautiful creative professionals).