I'm headed to San Francisco over the Independence Day weekend (three nights.) I used to live there but times have changed.
I am particularly adamant that I find a room with a view of the Bay. I was trying to avoid Union Square since I like peace and quiet.

I won't be doing a whole lot; just visiting friends.

Here are my thoughts:

• 1Hotel
  Rooms are on the smaller side, everything else sounds good. They don't have any availability online with FHR, but I can call Platinum Travel Service. They appear to have shockingly good deals for that weekend.
  
• Inter-Continental
  I have Ambassador status with IHG and a free weekend night could come in handy. It's in a grittier location, and it doesn't look so enticing. Not sure if it has a view.
  
• Hyatt Regency
  I've stayed there before. It's not super-exciting, but the rooms with decks/patios are have a partial view. Ridiculously easy location due to the BART.
  
• Le M�ridien
  I think it's under construction.

The Four Seasons (either option) was too pricey as was the Drisco.
I'm tend to like modern calm hotels, so I don't think I'd like the Mark Hopkins, Palace, Ritz, etc. I'm anti-chintz.

I have status with IHG (Ambassador), Bonvoy (Platinum), and Hilton (Diamond).

Let me know your recommendations.

Hyatt regency views vary and are mostly of the city rather than the bay. If a bay water view is of most importance then I’d just suggest a place in fisherman’s wharf or Embarcadero. At least there’s a Bart station in Embarcadero.
if you mean inter continental near Moscone (Howard & 5th) then just be mindful of the junkies who inject during the day. Just stay out of their way. I sometimes shop or go to ice skating in this area and definitely don’t walk while looking at my phone in this area. I don’t know another inter continental hotel in SF. It’s the biggest contrast with the posh shopping and junkies within a block.

LM does not have good views. At best you get slivers of the bay in between taller buildings.

The newly rebranded HR Downtown has good views, as do many other downtown properties (including GH, both Hiltons, Marriott Marquis, and the St. Francis). Note that Herb Caen used to say the MM (aka Jukebox Marriott) had the best views in the city because you can't see the building from inside it. Hilton FD has great views north of Coit Tower and the bay (though window cleanliness has been an issue).

FS Embarcadero (former MO) would be my #1 choice for views. OTOH, HR Embarcadero has made my no stay list with its poor noise insulation, shabby interiors, and endless gaming of awards.
The Mark is an IC. Located on nob hill, it has spectacular views.

is this the same place known as Top of the Mark? It was mentioned in Howard Fast�s The Immigrant series, probably in the 4th book Legacy which I read in the 80s. Never got around to visiting it

Top of the Mark is the restaurant and lounge at the top of the Mark Hopkins Hotel. Terrific views. I recommend this to visitors for a genuine San Francisco experience. It�s right on the California line of the cable cars, which is practical transportation to Chinatown and the Financial District.

ooh plus that means the bay views, which the OP requested :-)

I don't think the OP can do better than the Mark Hopkins for Bay views. Most rooms should have a decent bay view, and some you'll see north and east (i.e., GG to Bay Bridges). I've not stayed there in years, and am always suspect of "venerable old hotels" in that you can end up with a broom closet-sized room scented with eau du musty, but I wasn't disappointed in the stay. (Not a location fan, but you want views!)

The OP does is not interested in staying at the Mark Hopkins:

I think the OP will have to choose between expansive views (e.g., Mark Hopkins, Fairmont) or modern luxury. I don't think anything in the Financial District, SOMA or Union Square has really great views.

I've had some decent views from the highest floors at the St. Francis and the W, but I can't recall how much of the views were of bay waters.

The Four Seasons Embarcadero (really FiDi) has incredible views, but as the OP said it was a bit pricey!

Yes. The FS Embarcadero has the most spectacular views of any hotel in the city. It's on the top floors of 345 Cal, which until 2017 was the 3rd tallest building in the city (behind TA and BofA).

And there are multiple other hotels downtown with excellent views, as listed in my post upthread.