We are staying in Lihue. It has a nice sheltered bay, and we liked the vibe when we were there on the cruise ship.
Threadjack - has anyone stayed at the Marriott Resort?
Yes - we've stayed there twice - one was a "Vacation within a vacation" and another was a short stay on the way home. You can read my review from last summer on TripAdvisor - search vasoccerchick or title of review "short stay before airport."
Lihue is a good base for seeing the entire island and convenient to the airport, Costco, inexpensive restaurants. Whenever staying at resorts vs. condos vs. house, decide if you will stay at the resort and have a resort vacation or if you will be out enjoying the sites.
Kauai, for me, if a get out and explore island. I love to beach hop and hike. We "do" something every day - whether free, like the beach or hiking, or paid, like ziplining. Expensive resorts, for me, are for places where I wouldn't perhaps be out enjoying the rest of the island because of safety. Also, Kauai is VERY quiet. Not during the day, but at night there is little night life, even in the resorts. Tourists have definitely found it as our trip last summer was packed with people. We've never seen the island so full.
YMMV.
We've also stayed at the Sheraton in Poipu. Beach location is very nice.
I've been to the island many times over the last 14 years. We stay in and prefer the North Shore. Stay in a house near Queen's Bath in Princeville. Hanalei is my favorite spot.
Captain Andy's was good and I echo a previous poster about seeing the NaPali Coast. I would not recommend the NaPali coast tour in the winter. We were jostled around pretty well in calm seas; I can't imagine doing the boat trip in big swells. Also as an FYI, you'll see whales in the winter, not the summer. You can see them breach from the shore (preferably from a high spot - easy to find in the north). Very cool to see from a helicopter too.