It was very nice to stay in Arsenale, which seemed like a quieter part of Venice away from the crowds. We especially enjoyed the atmosphere of the upstairs bedroom at Monica’s place, which was very charming.
One suggestion for other guests. My wife and I decided to walk to the apartment from the train station in order to get some exercise, though we had been warned it would be much easier to take a water taxi. If you decide to walk, just know that it will probably take about 50 minutes to wade through the crowds and carry your luggage over each of the ~17 bridges we had to cross on our way.