For me one of the best things about venice is how the water transport takes you past some of the most lovely and unique architecture in the world. You just sit down and enjoy. Certain of the vaporettos (boat bus) even have open air seats at the prow so you have a grand stand view of the Grand Canal.
I was lucky enough to find an inexpensive room at the Generator Hostel on the Guidecca so I could afford to stay over night even. I can't say enough about how fabulous this hostel is. The last time I'd stayed in a hostel was more than a decade ago and it was nothing to write home about - dry, warm and cheap. This hostel is a whole other kettle of fish. Brand new fittings, floors and design, with lovely preservation of some of the building's original features. I got a large room with a big bathroom over looking the canal and Venice with breakfast for only 76 Euros. It had both heat and A/C and was very easy to find near one of the vaporetto stops on the #2 line.
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