Been there six times and have stayed in tow and out of town. When out of town I tried the Mountain Retreat. Very nice place and friendly staff. It is just along the river. However I found it annoying to have to take a taxi to "town" all the time.
The other times I was staying at the Magnolia. Not a fancy place but one street away from West street. You are closer to the "action" and the rice paddies are just a few minutes away by bicycle in any case. I have not been there in a while now but I know several new hotels have been built close to the center. Sorry, I do not know the Moondance.
note that adjacent to the Magnolia is an amazing vegetarian restaurant. This is the best restaurant in Yangshuo and I am not vegetarian at all myself.