I pretty much grew up here for parts of summers during my elementary school year into my middle schools. My mom's side is from Palacios and still have lots of family there, my wife's side actually has a bayhouse in Cape Caranchua, about 5 miles outside Palacios but still considered Palacios.
I've been to the Point many times and have taken my friends who visit there to eat - it's good, really good but if you eat during a Saturday or Sunday morning expect a wait since it does get slow due to traffic. Pro tip - call your order in ahead of time. Maybe a quarter mile from the Point is a newish place called Danny's Seafood and it is fucking unreal. If anyone is ever in Palacios I definitely recommend going there... fresh shrimp, seafood, burgers, wings and usually a live band Saturday nights. They're only open Wednesday- Saturday, the owner and family live in Cypress but head down half the week to run Danny's.
Everyone knows the Anthony Bourdain episode but on Netflix, one of Dave Changs 'Ugly Delicious' episodes spends a portion of their episodes on Palacios and their shrimping industry - the shrimp capital of Texas. I don't think they explicitly say they're in Palacios but I recognize the white water tower, red street signs and the family featured with Dave is a friend of my mom's family.
The fishing is great, another of my uncles has a bayhouse about 2 blocks from the Luther hotel (my parents got married in 78 and had wedding party stay there) they've got a huge fishing pier that is popular during the night and multiple access points to launch into matagorda bay. Ive mentioned it here in a thread about if we could live in a small town and eventually I see my wife and I getting some property out here one day. The kids love going and it'll always feel like a part of me
Go sharks!