We were there in March and went to the "old" Palapa Bar, north of the bridge, which is where I think you are asking about. It was up and running and we enjoyed it a lot. I'm not sure if it had closed between now and then?
We never made it to the "new" Palapa Bar, unfortunately, especially since it looks like it was destroyed by Earl. I thought I saw a picture from the many taken after the storm and it looked to me like the old Palapa Bar may have survived, except for the walkway out to the bar??? Fingers crossed that is the case. It was always a good time and would be a lot of fun for you, especially if your accomodations were close by.