This is such a beautiful place! I'm a New Yorker, so I never experienced much desert or western culture other than on very few childhood vacations out west. You will get your fill of all of the above things here in Old Town.
Yes, Old Town is touristy, but it is fun. We were only in Phoenix for 4 days, but we came here multiple times.
Scottsdale is somewhat artsy and classy without being pretentious. It was a delight to wander around here and see something so different than what we grew up with.
There is a nice selection of bars and restaurants. I loved Sugar Bowl for ice cream, it was quaint and old timey. Nothing beats the SB chocolate malt lined with a topping like marshmallow or caramel. We were here 3 times on our trip for dessert.
We enjoyed some happy hour margaritas at the Salty Senorita.
The shops were mostly touristy, I didn't buy much, but they were enjoyable to take a peek in. There are also some art galleries too.
We also found a great western museum near the shops and restaurant.
I would budget three hours to visit if it is your first time. There is a good amount to do and it is all within walking distance.
I very highly recommend this neighborhood to anyone visiting Phoenix for the first time. If I ever get back to this city, Old Town is at the top of my list.