Or where else in the panhandle would be nice if not Panama City?

Elsewhere in the pandhandle would include Pensacola or Destin, among
other places. Pensacola has the Naval Air Museum, and the aquarium is
in that area. It also has a real-town downtown area (off the beach)
with lots of restaurants, especially in the Seville Quarter (historic
district). In fact, I know people who vacation in Pensacola and never
go out to the beach.

Seaside and, further east, St George Island, are other possibilities.