My wife and I went down in August of 2009 and stayed at Treasure Island on a great deal. It's on the north end of the strip, but still close to a lot of places. It is a very nice hotel, but not a lot of money.
We walked up to Circus Circus for dollar drinks right at the front sidewalk almost every day. I'm not sure if Circus Circus still does this, but it was a great deal then. Just some information, if you stay at Circus Circus, there was a tonne of kids in the hotel. This may not be a big deal to some people, but just something you should be aware of. We didn't see a lot near the sidewalk, but in the hotel, they were everywhere. We were both shocked to see so many kids in Sin City, but there were a lot.
Mandalay Bay was the best place to see aquariums when we went.
I'd recommend staying right on the strip as it is quite the experience. If you had to cab it every time you went to the strip, it would just become a pain and add to expenses.
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