Like many other cities in the Middle East and Africa, Cairo's wobbly infrastructure makes it a difficult place to live. Food inflation is running at 66%, and members of the middle class are sliding into poverty.
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Egypt is nearly crime-free. Most crime is petty theft, with little violent crime. Still, you need to keep alert when walking through densely populated areas of Cairo or Alexandria, just as you would in other large urban areas around the world.
The people are super friendly and warm and they love Westerners, but they are also personally quite conservative. So although they are used to lots of foreign tourists in the cities, it's generally a good idea to still respect their cultural norms, which are heavily influenced by their religion.
I would say that Cairo is safe, provided you take precautions and wise up on common scams. Like any large city, petty crime does happen, but this can easily be avoided by locking up valuables and not carrying around large amounts of cash.
As Egypt is a majority Muslim country, many locals abstain from alcohol completely. However, it is possible to find liquor stores and bars in some upmarket neighborhoods, and many hotels and resorts serve alcohol.