Wander the hutong alleyways near the Bell Tower in the early evening, then walk south along the edge of Qianhai Lake to see the street dancers at the entrance to the Houhai entertainment area.
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The towers are worthwhile but afterwards get out as soon as possible. Go to the block of hutongs east of Jiao Dao Kou nan da jie (street name) and east of dong si bei da jie to experience something more genuine. Also, areas like Xisi are way cool.
I am sure Mr Watts would agree with me. Also South Beijing (were things are way cheaper) offers some real old Beijing flavour if you know where to look. I lived around the lakes for 10 years. It totally got trashed in two years. If you like a silly China experience go and see for yourself.