I love Palm Springs and although I abhor circuit parties I've had fun during White Party weekends when I've been there.... however, I prefer to stay at the Hyatt Regency Suites, which is right on North Palm Canyon, which is its main artery. It's within walking distance of everything downtown and on Thursday nights they shut down NPC for a street fair -
http://www.palmspringsvillagefest.com/.
I find that I do like to rent a car when I'm in PS as I want the freedom to drive to Cat City, Cabazon or to go to some of the clothing optional resorts in Warm Sands, etc. on a daypass. Buses are not very frequent and taxis almost non-existent and (I imagine) very expensive. By the way, there is ample parking BEHIND the HR Suites so need to park in the garage.
Enjoy PS, wherever you decide to stay... it's a wonderful place!