Virginie’s place is an excellent option if you want to be near Valletta and stay somewhere that is much more local and less touristy than the Valletta/Sliema area.
The biggest downside is that travel times to elsewhere in the country can be longer if you're only using the bus system. Renting a car or getting a water taxi to Valletta can make the trips shorter. You typically need to go to Valletta (or close to it) before you can get a bus to other places in Malta.
There are a lot of no-frills restaurants a short distance away on the shore, but if you cross over to Birgu (15-25 min walk) you'll find many nicer options.