Venice accommodations don't have to be outrageously expensive.  Pensione Accadamia [**,$$]  (about 2 "blocks" and one small bridge from the Accadamia) is a very nice option.  It's in a great location;  the interior is beautiful;  rooms are ample; room windows overlook a side canal;  and there is an outdoor garden.)  

Best of Venice.  The New Ghetto [**] on the Campo del Ghetto Nouvo was the first Jewish Ghetto in history.  Much of its history is preserved and recounted in guided tours operated by the Synagogue museum (call ahead for time of tours in your language).   After the tour we visited the Davide Curiel (David's Shop),  which is small arts & crafts & souvenirs shop next to the museum.   This shop sells the marvelous hand made glass figurines of Moretti Raffaele [**,$$].   One bridge over from the New Ghetto is the "old" Ghetto, which was actually established as a Jewish Ghetto after the New Ghetto.  (So why is it called the old Ghetto?  Because Ghetto means foundry.  The old ghetto was where the old foundry was;  the new ghetto was a newer foundry.  Nothing to do with the Jews.)  The opera house La Fenice [**] reopened in 2005 after major reconstruction, is one of the "big" houses in the opera world. Morning-afternoon guided tours are a must for opera aficionados and would also interest anyone interested in Venice history.   See our photo album.  On Campo San Barnaba (not far from Pensione Accadamia (see above) is a small pasta and olive oils shop, Enoteca Randon [*] (behind the newspaper stand).  The proprietor does his best to educate you on the uses of fine olive oils. 

On a visit in January 2005 we discovered that Venice in winter is a a nice alternative to the busy summer months.   There are fewer tourists (but still quite a few -  many folks seem to know the winter secret) and the opera season is on.  The cooler weather and fewer crowds is nice for joggers.  Best pavements to jog are  (1) starting at Punta della Dogana, take the long promenade on the S shore of the Dorsoduro section; (2) start at Campo del Ghetto Nouvo, take Fond d. Ormesini, Fond. Nouve (running along Canale d. Navi, and somehow meander through alleys to Darsena Grande.  The promeade along the Canale d. San Marco, all the way from Piazza San Marco, west to the Giarini Pubblici, is also nice for a jog if you can find a day when it's not packed with tourists.

3 best pizzerias:  Bar Sport, on the island of Burano:  a  lovely neighborhood pizzeria with outdoor seating for people watching. Pizzeria Trattoria S. Toma, inSan Polo.  And #1 recommednation:    Trattoria Da Silvio [***,$], S. Pantalon 3748, in the Dorsoduro section, features a romantic garden hideaway.  All these are very fine restaurants with more than just pizzas.

The pub crawl is an enjoyable alternative to a sit down dinner.  Venician pubs combine wine tasting and noshing on appetizers.  We followed Rick Steve's advise and started our pub crawl at Osteria Alla Botte, S. marco, in an alley one block from the Campo San Bartolomeo, near Rialto Bridge.  Even so close to a major tourists area, it's jammed with locals.   We visited other pubs, but Alla Botte was the best.