Ubud is a great base for visiting Bali if you're not really into beaches and tourist resorts. You will have plenty of choice if you want to rent a private villa (would look around beyond just the listings on wikitravel).

Not necessary to be in the city center, which is kind of crowded and touristy, but convenient to be within a 10-15 minute car or motorcycle ride away near the local rice terraces. Even though it's not really "traditional", we did enjoy the kecak dance performance at one of the local temples (there are daily performances but in different locations.)

I might still have the details of the driver we used for a day trip while in Ubud. His prices were fair and he wasn't too chatty or taking us to his "friends" shops or "craft" centers. He was also quite knowledgeable when we did have any questions, but we booked him as a driver and not as a tour guide. PM if interested.