Just spent a week in Venice. August is a decidedly bad month for fine dining, as many of Venice's best restaurants are closed. However, we still managed to eat well. Two places are of special note.
Ai Gondolieri - Near the Guggenheim Musuem. Beef risotto, ravioli in truffle broth, and a filet steak in barolo and porcini sauce were all delicious. The place was full of English speaking tourists, which proves that this is not always the kiss of death.
Muro - near the Rialto markets on the Santa Croce side. There is a busy wine bar on the ground floor, with a small dining room done in modernistic style on the second floor, where you can look down on the knots of customers in the campo enjoying a glass of wine. Excellent food, especially a salad of cold, smoked shellfish, and a carbonara with smoked scampi instead of pancetta (the owner does his own smoking). There is a certain amateurishness to the restaurant (a main course came with the same sauce that appeared on an appetizer, and the wine list is rather weak). Despite this, a very enjoyable meal.
We also ate at the restaurant at the Cipriani Hotel, not chowhoundish, but awfully good, and Harry's Bar continues to turn out some of the most consistantly good food in Venice, if you can stomach the awful prices.