Recommended. Katie and her husband are new hosts but doing a great job. Amenities and information provided were a step above what I'm used to, including breakfast foods, toiletries, facial tissue, and a washcloth. The room is quiet. 5 minute walk from a grocery store, NGV, tram stop, and a large park, 15 minute walk from the edge of the CBD. The dog is safe and friendly, and I'm not a dog-lover. The hosts are also friendly. :) 2 of the outbound trams go to St. Kilda. Window is south-facing, so away from the sun in Australia.
--Possible drawbacks: There are a few restaurants nearby (and Katie provides their menus!) but there's not that much to do in the immediate area. 20 minute walk from a full-sized supermarket or a post office. There are so many tram lines they get in their own way, I often found it easier to just walk to the CBD. The room is pretty much exactly like staying in a friend's guest room: there's plenty of room for your belongings, but you do share space with stuff your host is storing; I didn't care, someone else might.