I don't understand how you can blame the hotel for the crowds out and about, especially in Venice.
I stayed in the Danieli at the end of July last year. It was beautiful and got upgraded from the Premium Deluxe King to a deluxe lagoon view, albeit I was staying on a FHR rate with gold SPG at the time.
What was excellent was the welcome gifts, including a bottle of red wine and some biscotti!
Breakfast wasn't stunning in itself but the views were amazing. Also had to watch out for wasps unfortunately at breakfast so I've day we ended up going inside.
Bar was pleasant and had the obligatory Vesper Martini!
We really enjoyed our stay at the Danieli. Hopefully one day we can make it back!