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Where to stay? Niagara Falls or NOTL??

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My husband and I will be travelling to the Niagara Falls area in early May with our son who will be 17 mos. old. We will be there for 2 nights. We would like to stay somewhere that we can walk to restaurants and sights, rather than have to get in and out of a car with the baby. We aren't sure if it would be better for us to stay in Niagara Falls, ON or Niagara on the Lake, and then exactly what area of town in either of those two places. Also, if anyone has restaurant recommendations, preferably non-chain restaurants, that would be great. Please help.... I am a little lost. Thanks!!

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