Rick,
If you are interested in "on the water" check out Lighthouse Beach Resort. We used to own #13 and the Babcocks own it now, and it is really nice and very reasonable. Unfortunately they may be booked. They are at the south end of belnem, closer to the salt piers. You can get a nice townhouse on the Seaside. If #13 is booked, try looking into bonairehomes.com, as they have some rentals available at lighthouse beach.
Tim,
Like there others have said, everything is within a 10 minute drive to anything (basically) on Bonaire. If you stay at north of town, toward Hato, you will have "hotel row". All of the restaurants and bars are open to everyone, so you can utilize those. You can also be in town in less than 10 minutes.
If you stay within town, you are walking distance to Karel's Bar and City Cafe and all the major in town restaurants.
If you stay north of the airport, but south of town you have divi and plaza resorts and a couple of restaurants within walking distance.
Belnem is located south of the airport and a more residental area. It does have some great places to stay such as Belmar and Belafonte, but there are no restaurants or bars in that area.
Hope this helps.
Liz