Hi Roy, there's lots of amazing suggestions going on over here already. See if this helps: http://answers.worldnomads.com/questions/indonesia/4256/we-need-a-hotel-recommendation-in-bali about 6 years ago
It really depends on your interests.
I always try to avoid Kuta / Legian etc because they tend to be overcrowded, but thats just me.
If I have to stay in those areas, I choose Seminyak. Its close to restaurants and cafes as well as some nice shopping. Being in these areas means traffic though and for me an island holiday is best without all the noise.
Last year we rented a private villa in Ubud that we found on a last minute website and it was amazing. A 2 bedroom villa 15mins out of Ubud with our private swimming pool, maid, driver, masseuse and chef cost us only $280 per night. about 6 years ago
I stayed at The Payogan hotel near Ubud, and it blew me away. Make sure you ask for a valley view room.
I also stayed at The Hill Villas. It was amazing, but not that close to anything, just an exotic and romantic getaway hotel in itself. about 6 years ago