If you want to soak up the real Venice, stay at Guido's place. It's located at a great location, the square is lively, and once you figure out the way the first time, it's all great. There are a number of nice eateries around his place, people get together at the square every night, eating, drinking, chatting. Yes, it's bit noisy till late at night but it didn't bother us. We were dead tired after our all-day exploration and crashed immediately as we hit the bed. The room is very spacious with two single beds, one little bigger than the other. You share the bathroom withbthe host but it's no problem. The house is a mini art gallery. Guido is kind and helpful, though our interaction with him was limited. We lost our way at the square when we first arrived, so Guido came down to take us to his home. We had keys and left and came back to the house freely, at our convenient time.
Would definitely recommend his home, we felt completely at ease there.
Oh and yes, double bonus if you love cats. And even if you don't, not an issue. Guido's cat is as gentle and well mannered as him!