Much of the shoreline devastated by Sandy is still in bad shape, but bits and pieces are coming back. Much (most?) of the federal money is still to come given the bureaucratic mess in DC combined with a proper focus on homes first. Many businesses didn't have flood insurance doing business would be impossible given the premiums. But a few pioneer businesses came back on their own making way for others to follow. A few months ago NPR did a piece on the amusement park at Coney Island.
Coney Island is a neat place. Tacky, but neat. The Wonder Wheel is highly recommended and, of course, the Cyclone if it is running. I don't eat it, but I'm told some of the local sea food is great. If you are in the NYC area this Summer and want a period experience, give it a try. You can get there on the subway.