I stayed in a nice hotel in Pest. There's a very lively strip in Pest with cheap drink and food. I never encountered any drug dealers. However I did encounter 3 'ladies', at night. In my naivety I was thinking 'Ooooohhh 3 women talking to me. Result!'. Until 1 said 'You want sexy time?'. 'Wow you Hungarian women are forward.....ooooohhhhh'. Penny drops.
On our last visit we were staying right on Kazinczy Street (next to Bors and only about 5 doors down from Szimpla so right in the heart of things). The closest we came was some English lads in Instant asking me if I knew where to get anything, but that was about 2am in a club. Weird that we didn't see anything else for 2 weeks, I'll be upset if I'm now too old to get offered drugs.
Don't know what part you went to but after 7/8pm it was absolutely littered with them. Every few yards it was "cocaine?". The taxi drivers were also gesturing 'snorting' to me and friends.
Us and all our friends fell in love Pest and can't wait to go back there. We didn't see any drug dealers either (even in the places you'd expect in District VII) but like any city they will be there. My best mate lived in Pest for a few years until last year and he says there's much less of a drugs culture than over here. Taxis are notoriously dodgy in Budapest, like a lot of European cities. Apart from basic overcharging it's been known for people to get their change back in another currency (Indonesian notes or something equally worthless) or get ripped off in other ways. Thankfully there's no real need to use them as the public transport system is absolutely brilliant, and cheap too - buses, trams, metro and trolley bus, it's a really extensive and efficient network.. If you really must get a taxi for some reason then download Taxify and use that - it works in the same way as Uber (except you can either pay by card on your account or in cash) and you won' get ripped off. Tonnes of stuff - tripadvisor will give you more of an idea for the standard sightseeing stuff like St. Stephen's Basilica, Castle Hill etc but for family stuff we loved the Zugligeti Libego Chairlift, the Labyrinth caves, an amazing and unforgettable trip doing 360s and other stunts in a speedboat on the Danube with RedJet, Aquaworld, Margaret Island, thermal pools etc. For adults there is the House of terror, loads of amazing ruin bars and clubs, some great exhibitions, Xmas markets etc. Both the kids and adults loved the Pinball Museum - cheap to get in with absolutely loads of pinball tables and arcade games from the 50s to present day on freeplay.
Wouldn't bother trying still trying to get my money back after they can't honour the advertised deal. 69 per person from London on 10th or 11th. I even let them check for any other day that week and they still can't match it.