In regards to the civil unrest... Obviously since I was told to stay in after 10pm, I went out at 11pm. It barely looks any different. I think things shut down early, but not everything.
Plus, it'll wash over... I hope. But no protests, no military. It's all in Bangkok.
In terms of Patong for $13-$26 a night... it's a nice hotel and you could always rent a car to see nice beaches. Pervert street is indeed not very big. And most perverts don't like light, so nothing get's "seedy" until night. If I was here with a family I would rent a car or something... Maybe $25-$30/day added.
Which it sounds like it's a break even $30+$30 vs $60. But whatever hotel you need to book, you have to get there. With a car you got the to/from covered plus the ability to see all the amazing beaches. I could go either way, I love being on the beach personally.