We thoroughly enjoyed staying in Old Town Prague and being within walking distance of many of the main attractions. The only drawback of the area is that it is all tourists.
Our apartment was wonderful as well - spacious, comfy, well-decorated, and clean. It was a plus to have the toilet separate from the rest of the bathroom.
Tip - We highly recommend going to Pork's (porks dot cz) across the bridge in Mala Strana (Lesser Town). It was so good if we were there longer we would have gone there twice. We had pickled cheese and pork knuckle.