Well, the OT still hasn't told us what they consider as reasonable $$, so I'll weigh in and say "Mayan Princess" for location and cool suites, right in town . . . beach area ain't all that. Regardless, that is where I spend the majority of my time lately when I'm in San Pedro.
Blue Tang has some really cool rooms too, but think the prices are probably a little out of line. Sunbreeze Suites might be doable, though I believe it is more spendy than the Mayan. Again, the beach ain't all that.
On one of my trips down last year, I met two mature couples (early 30's ish)that were staying at Ruby's. These two couples had met each other independently. Both of these couples were well seasoned world travellers and as used to backpack places as mid to high end. Both of these couples moved from Ruby's to Hotel del Rio and they couldn't have been happier. They considered the experience of staying at Ruby's and Hotel del Rio to be lightyears apart.
All that said, Hotel del Rio is a bit of a jaunt in a darkish area, after having imbibed of an evening.
Also, consider Holiday Hotel.
Check with Capt. Ron and see what kind of rate he can offer on his place at Tradewinds Villas.