I've lived in Toronto
for about a year now and I've eaten, drank, and hung out at The Green Room
a number of times. It's okay. I agree that you go to The Green Room
for the people, but I usually made the mistake of going there to meet up with friends or do something mildly specific, instead of merely going to hang out and people watch. I'm not particularly fond of the food and the beer selection is somewhat dismal, but it can be interesting on a Friday night. I haven't been back recently though, as I went most often when I worked somewhat closer to the area, at Bloor & Church
More recently, a place called the Red Room has opened up in the last few months on Spadina that is essentially very similar in particular indescribeable ways to The Green Room. One of the better descriptions I've heard is that Red Room was an eatery bound for College Street that got lost on it's way and ended up on Spadina (otherwise populated by lots of various asian food eateries, many good, some excellent).
I live near Queen and Spadina and I find myself consistently in the College West, Queen West, and John & Richmond areas. I esepcially enjoy Utopia on College West as a nice eatery and Smokeless Joe on John as a beer lover's paradise (with great seafood dishes to boot).