This isn't meant to be a Lonely Planet chapter on Venice, just a couple of random notes.
We loved our hotel. Locanda Sant'Agostin. It's possible to get a room with a tiny balcony overlooking a canal. Here's the view from our room.
It's in a very quiet location. The only challenge is it's a few hundred metres from the nearest vaporetto stop. So you either need to schlep your bags quite some distance including the usual Venice bridges, cobblestones and getting lost or you get a private speedboat transfer. There is a wharf just outside the hotel visible in the above photo.
It's a very small family run hotel. So don't expect Hilton international style. But do expect real people providing great service in a beautiful spot.
http://www.locandasantagostin.com/
We tried some Michelin star restaurants and highly recommended restaurants. I can suggest just two.
Osteria Da Fiore is very near the hotel.
http://www.dafiore.net/en/
The food is very Venetian, the service was a bit stifling and it wasn't the meal we enjoyed most during our trip BUT if you can secure the outside table you've got it made. The balcony had room for just one small table for two. It's over a canal, visible from a bridge - so people stop and take your photo like you're a rock star or something and gondolas go past from time to time.
An indoor table would make this an ok night. The outside table was superb.
Here's a photo of the balcony:
Their wine list is very good, including a bottle of Franciacorta to get the night started.
Finally the best meal we had was at Algiubagio.
http://www.algiubagio.net/
Fantastic spot on Fondamente Nuova, brilliant wine list, modern Italian food (not necessarily Venetian) and worth a repeat visit. Not cheap, but very stylish.