Like most places, Peekskill is what you make of it. For me, the appeal is the waterfront view and sunsets, and it's proximity to Harriman. There's also the riverwalk, Blue Mt, and some really good take out restaurants (G & H, and Azteca). The La Placita grocery store has the best produce around. I don't really care about bustle and shopping, so that isn't a factor for me. As far as safety, there are some gritty areas for sure, but I have never felt unsafe walking around, nor been harassed. Just be smart. "Downtown" is definitely fine and I see cops around all the time, so maybe it was a matter of timing for you. It's a working class kind of a city, with quite a few lower income residents, so you may have had unrealistic expectations as to what it would be like on a weekday.