Unfortunately, in my experience, virtually everything in that area is a tourist trap. I honestly can't think of a single place between 23rd/50th Sts and east of 8th Ave that I would ever want to go. Maybe Becco on 46th St for Italian - my friend had his bachelor party there, and it was decent - but there are other cheaper/better places to go outside of the Midtown tourist zone.

I'd recommend staying either on the UWS or below 23rd St (but not in the financial district) for a more normal NYC experience. These are neighborhoods where regular people actually live, so the restaurants tend to be higher quality and less expensive. Also, you'll be experiencing the city as its residents do, rather than being surrounded at all times by hordes of tourists.

One possibility would be the Holiday Inn on Lafayette in Chinatown/Soho. That location is quite good, and it seems to have relatively reasonable rates.

As to LIC, I've stayed in the Verve and found it very nice (and I even was able to get a room for <$100/night in the past!), but from what you say you sound keen on being in Manhattan, which is fair enough. There's also a Holiday Inn in LIC that looks quite nice from the outside, although I've never been. I'd check those properties' prices just to see what you find - you might find rates that are $100/night or so less than Midtown, just because people can't get their minds off being in Manhattan.