We stayed at the Mirage, which has a really good position, and there is a lot to do in and around the hotel - pools, slides, dolphin and tiger habitats....It's not overly expensive either, and it's on the north end of the Strip, easy walking all the way down to the Luxor, but still quieter.
I would say as long as you somewhere along the Strip, you won't go far wrong, but imho, the Stratosphere and the hotels out with that are too far out of town.
Remember that most of the hotels are open to all (apart from the pool areas) so if there is a particular attraction you are interested in eg rollercoaster at New York New York, you don't need to stay at that hotel.
A lot of the hotels run special deals which you can sign up to on their websites - I'm getting ones for the Venetian now which are $149 / night, which is amazing for a hotel of that standard. I would say, sign up for them all, and see where the best deals are.
Also, be wary that if there is a really big convention going on - and there often is - book early because a lot of the hotels sell out quickly.
Good luck.