I stayed at the Tereza last in 2008 and stayed b&b in the newer hotel building at the back which was fabulous.
The breakfasts are great and we had quite a few lunches there which were also fab but for me personally I would not want to be tied to eat in the same place every night no matter how excellent the food is.
A big part of the holiday for me is going out for the evening meal as I rarely get to eat out at home. I love eating at a different place most nights so I would never stay hb.
With regards to the comment about Tereza's food not being as homely and more slickly presented, I think that Leo and Fanis have taken more control over the running of the Tereza in the last 3-4 years and as a result of their younger 'vision' the decor and presentation of the hotel has really been improved and this has also extended to the food which is great. I think they have created a really lovely contemporary hotel but with the same warmth and charm that it has always had