I love Dal Lake. I have travelled to Kashmir plenty of times and always stay near Dal Lake because I love it. But i hate how bothersome the touts can be on boulevard. They will literally crowd you from all sides to sell a night at houseboats or a tour of the lake. Politely declining does not help. They can be quite persuasive, affecting the quality of experience. But if you can find a nice, quiet spot then there is nothing like sitting by the lake in the evening. It changes colors as the sun sets.
You can also go early in the morning for touring the flower market that is very popular amongst locals and tourists visiting Srinagar. Dont forget to try Kahwa sold at many shops along the lake for a complete Kashmiri local experience.
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