Many people who live in Perth drive to Dunsborough by car. It usually takes around 3-4 hours to get there depending on stops etc...
There are no trains or transports like that so car is the way to go.
The beaches are lovely and are probably the main attractions in the region.
West of Dunsborough along Caves Road is a cave named Nglili Cave. It is probably one of the deepest in the region and has many wonderful features. Weddings are sometimes held there. The lighthouse in the west is also very popular.
You can go fishing, surfing, swimming, driving around, visit wineries etc...
Dunsborough is home to one of the most famous bakerys in WA. The pies are delicious there.
Read above.
Same as any other city/town in Australia.
There are many motels/hotels/resorts. Beachside resorts are especially popular.
Dunsborough is very safe just like the other towns in this area. Around times where school leavers come down here you might want to avoid them as some might be drunk but most don't cause any problem.
You can continue driving down south more and you will reach Magaret River, Augusta and many other small towns in that region. Wineries are probably the most popular places to go to down there.