I live in NT, but I'm only 22 years old so I can't say I was around back in the bar days. There are a few bars on Oliver which are OK but Webster seems to be where it's at lately. The Riviera is starting to be revived with life again, Dwyers and Crazy Jakes are fun bars and are usually packed both weekend nights, especially in the summer. JP Hooligans has opened up just across the canal in Tonawanda which is also a lively place on the weekends, and open until 4 am every night. All three bars are within 100 yards of each other so it usually leads to a fun night.
I've also heard of the world record before, but I never knew if it was true or just BS.
EDIT: Under Wikitravel-- Niagara Falls (New York)
"Oliver Street was in the guiness book of World records for many years for having the most bars on one street. Upwards of 100 bars are still on Oliver. One of the best being Soos's bar (now called Witter's Sports Bar and Grill). Oliver Street is located in NT (North Tonawanda) about 15 minutes from the Falls. At the end there are many things to do. Roller skating, tattoo shops, The Riviera Theatre."