Just came back from Italy where we used points to get there in BE on DL but not for hotels--I did not have enough points.
In Rome we stayed at the Hotel Villa S. Pio or Pia in the Aventine neighborhood. It is an upscale residential neighborhood which is nice. Large, upscale rooms--ours had a huge balcony where we took breakfast in our room (no charge). Check out Fodors.com and charmingitaly.com I believe. This is a 3-star hotel and does not compete with the Hassler, etc. but was perfect for our honeymoon. Be sure to tell that you are on your honeymoon and they'll give you the best room.
I echo the sentiment that the cab drivers are prone towards ripping you off, but I thought the Cavalieri had a shuttle.