For Athens check the Ochre and Brown hotel, in Psirri, very central location. I think it suites perfectly your vacation style..
In case I am mistaken see for yourself!
http://www.hit360.com/ochreandbrown/en/
(panoramic pictures of the rooms, reception etc)

To Richard 1148. Whoever told you that paying extra for a sea view at Naxos Toyal was correct. Naxos Royal, while only a 30 second walk to the beach really doesn't have a great view as Hotel Illion partially blocks the view. Naxos Royal has beautiful landscaping, is tranquil has a great pool area and is beautifully appointed, however I could find lots of uses for an additional 15 euros a day than paying for a rather modest sea view. I say this without any criticism of the hotel, it is really an upscale place and with a 30 second walk to the beach the sea view really isn't too important.

Thanks Stanbr, I'll stick with the regular room I have booked.

Katerina,

The hotel looks great. I can't figure out where it is though. Can you tell me anything about the location and what it is close to? thanks.