@KathyV and
@Alucard
Thanks for the clarification. Sunset house is also an option for sure.
How's the driving situation and parking situation in Grand Cayman? Is it easy to find street parking or paid parking in George Town for instance? Or at the "better" restaurants on West Bay Road? I'm going to assume we're not going to be shaken down by police officers, right?
Try not to compare Cayman with Coz. They're not really similar so that will just throw you off finding the right place.
By town, are you thinking of the cityish area of Georgetown proper near the harbor? Or what's really West Bay, the fairly heavily developed general area along 7MB which is more where Comfort Suites is.
Comfort Suites seems like a good lower priced option that suits some people, and you can walk to some things. I wouldn't call it the closest place to Georgetown proper - perhaps the closest moderately priced but pretty good place? But that's sort of irrelevant, because there's no reason to look for a place close to Georgetown. Georgetown has some restaurants and a bunch of shopping supported by cruise ship visitors. Visit it one day if you must, preferably on a light cruise ship day - or better yet not.
If your real goal is to find a place where you can manage without a car, there are a number of choices which have been covered in this and other threads. Many you can walk enough places or take quick cabs, and the dive ops will pick you up if you're not diving with an onsite op. Or try the buses, though I consider messing with that a waste of time on vacation. Someplace like Cobalt Coast with the AI you can get away without leaving the ranch. At the Holiday Inn you can mess with the shuttle and whatever rides you can snag from the dive op to shore dive. However, you may be happier with a car on Cayman - it opens options of where you might want to stay, and gives you more flexibility even if you stay someplace you don't "need" to drive. We rented one partway through our first trip there in 94, and have always gotten one ever since. Yes you have to get used to driving on the left, but it's not so bad, the roads are good, and rental cars seem to be for some reason one of the more reasonably priced things on Cayman. I don't think we've had too much trouble parking in Georgetown, but that's probably because we've had no need/desire to since that first trip! Restaurants at hotels or otherwise along West Bay Road, or anyplace really, we've never had a problem parking, there always seem to be adequate lots.
A car also opens the option of the East End - really you need a car to get out there, do a little sightseeing, and visit some restaurants beyond the couple that may be where you stay. It's also a good place to practice driving on the left, since once you head east out of town all you've got is a few simple and uncrowded roads without rotaries.
You are not going to get shaken down in Cayman. It's nothing like places where you might be concerned about that. You may find it more "first world" than a lot of the US.
I keep seeing people talk about Cobalt Coast or the Holiday Inn not being near anything. This is true in a way. You can't walk to anything. But stuff is not really that far away either. To me, being in a quiet area where I can make a relatively short drive to lots of stuff is perfect. Depends on your perspective - most things are still probably closer than I have to drive at home!