Last time I visited DC, I stayed in Arlington. The Metro was pretty easy and the prices of lodging were much less. Am I giving up a lot in terms of convenience or atmosphere by not staying closer in? Also, I would like recs on Suite hotels in Arlington if anyone has any. Unless staying there is a big no no, or you know of a better option for me (money matters), I'll probably book in the area or some other outlying area if it doesn't compromise our trip.Thanks in advance.

If you are traveling solo, try the HI hostel for a night.
http://hiwashingtondc.org/
Probably not a great idea if you are traveling with your spouse.

There is a relatively new Residence Inn in Ballston (Arlington) that is great - it was my go-to hotel when daughter lived 2 blocks away. Nice breakfast, fire pit outside. Only downside is that it is about 1/4 mile from Metro - not a bad walk. Lots of restaurants within walking distance. Sometimes you can catch a good deal on price.

Would you be interested in staying in a hotel which is directly above the Ballston Metro station? Or less than one black from the CourtHouse Metro station? Hilton for the former; Hilton Garden Inn for the latter.

I think it depends on where in Arlington you stay. If it's next to a Metro stop, you may be just one or two stops from the District. What you give up is the ability to go back to your room easily in the middle of the day to rest or clean up before dinner. But if you can save considerably, it may be worth it. I generally prefer to stay in the District so I can walk to restaurants and even the sights since the Metro is expensive and can be crowded. But there are times when it's cost-prohibitive to stay in a DC hotel.

I would not stay in a MD suburb that requires a longer ride. I don't think that's usually worth the trade-off, but Arlington is different.

I have enjoyed the Woodley Guest House and found it to be reasonable. It is a B&B so you have your choice of level of room (shared bath or private). They also serve a nice breakfast. It is by the zoo so you are in a neighborhood with restaurants and it is just a 500ft walk to the Metro. However, it does not have all the amenities of a hotel if that is important to you.

We recently stayed at the Embassy Suites Crystal City (Arlington). We drove into DC, but realized afterwards that the hotel has a shuttle to the Pentagon City metro station.

As a resident of Arlington, I think it's quick, easy and affordable to get into the city via Metro. The two suites hotels chains that come to mind have already been mentioned--the Embassy Suites in the Crystal City area and the Residence Inn which has hotels in the Ballston, Courthouse and Pentagon City areas.

All of these hotels are within walking distance of Metro. You do not need to take a shuttle from any of these hotel to Metro. The Embassy Suites is about 3 blocks from the Crystal City Metro. (I don't recommend shuttles because they are time-wasters.)

It's easy enough to stay in DC for dinner and take Metro back to Arlington afterwards, but there are good dining choices in Crystal City, Ballston and in Clarendon, a popular area just two stops from Ballston on the Metro.

Arlington does offer a relatively cheaper alternative to downtown it is true. But if you were willing to go a step even further, to Alexandria VA, you would not only get a cheaper hotel but also a local Olde Towne scene (restaurants, bars, colonial era buildings, harbor, arts-converted Torpedo Factory on the waterfront, etc.). You could then commute to DC via metro yellow or blue lines from the King St station, or take the Water Taxi from Alexandria Harbor to Georgetown/National Harbor, to see DC and the monuments from the Potomac River. We stayed at the Hilton Garden Hotel on Prince Street, Alexandria, two blocks from the metro last year and found it very good. It also had a deal on hotels.com

We now stay in Arlington all the time at the Hilton above the Ballston metro that Dukey mentioned above. Our daughter lives right next door so that was the original reason for staying there, but it is a quick metro ride into the city. The Hilton is almost completely redone and is a good place to stay.
I have not been to the Residence Inn that Gail mentioned but that is usually more of a suite/kitchenette room which might be better for you.

If you've been here before, you ought to be able to answer this yourself. I think it is really "atmosphere", you know what the metro ride is like, it's not far from Arlington. But it is a different atmosphere, especially big hotels around metro stops, cmopared to staying in DC. That's all, really.

But I don't know how anyone can answer whether that is "a lot" except yourself, and if you've been in DC, you ought to have an opinion on it, I would think.

I'd rather stay in DC, I think Ballston, for example, is boring, but depends what the price difference is.

All I can add is, check the rates for Residence Inn and Embassy Suites inside DC (various locations), because, for example, if there is not a big event at the Convention Center, the Embassy Suites in Penn Quarter might be comparable in price to one in NoVA.

I usually stay in one of the Crystal City Marriotts, which are right on top of the metro. I find them plenty convenient and there are usually good rates for the weekends, unless one of them is hosting a convention. Otherwise I would probably pick the Dupont Circle area, I've stayed there in a Hotwire buy.

Am I giving up a lot in terms of convenience or atmosphere by not staying closer in?

yes