Honestly, someone wrote to not look any further than Nick and Nancy's and I couldn't agree more. It's right off the port, which sounds like it would be noisy, but its tucked away in it's own little area. The pool is AMAZING and rooms are wonderful! Right when we got in Nancy knew we were looking around on where to drop our stuff off and she came around from the bar to introduce herself and Nick. They are true gems.
The walk up to the main town is up a hill, but honestly, all of Greece is a hill. It shouldn't be a surprise if you've been in Greece before. On the walk, it takes maybe 2 minutes before you start getting to some restaurants but like others said, it definitely is a 10 minute walk before you hit the main town. Minus the hill, it's a nice walk. After our trip, the only place I wanted to go back to was Ios and a lot of it had to do with how relaxing and pleasant staying at Nick and Nancy's was.