Australia, New Zealand & the South Pacific - Palau on a budget: recommendations?

Will be spending some 5 full days in Palau in January and would like to hold total outlays for everything to $100-120 a day. I'm not a diver but would try to make room in the funds for snorkel trips or trips to the Rock Islands. Would be nice to hold hotel to $50 or less (knowing what that buys from previous trips to Yap, Pohnpei and Kosrae). I hope to do a mix of less-expensive meals and maybe a $10-15 splurge or two (should mention perhaps that I'll be a party of one).

Any hotel, tour-operator or restaurants to recommend?

I realize I'm not swinging for the fences with this trip, but I finagled it as a stopover for a much bigger trip (Philippines, Thailand, etc.), so I'm fine with modest outlays for modest rewards.

Also, the Lonely Planet is some 5 years old. Did they get the road around Babeldaob done? How much can you see by renting a car?