We adored staying at Nicoletta's place. We had the first floor apartment, with the terrace looking out directly over Ammoudi Bay. We had great plans to explore the island but were so bewitched by the view from the terrace that we barely moved. As long as you can handle the steep walk up the 230 steps to Oia, I'd definitely recommend staying down in Ammoudi instead. Much more chilled out and you can dive from the pier straight into clear blue waters.