DO go to bali, its really nice.
I lived in bali until last year, but still frequent there, got a house there so no need to stay at hotel.
but if need accomodation, there are A LOT of cheap hotels to go.
on the diving part I can tell u a lot and lengthy statements here, but just to save me the trouble, why dont u visit our diving club website for all information regarding diving bali:
www.kapalselam.org
No need to do LOB in bali, not worthed, everything is in the reach of small boat.
Places that I recommend are:
1. Tulamben, u can either stay in Mimpi resort or Matahari (cheaper), but i recommend u dive from matahari. Its okay eventhou u stay at mimpi.
2. Padang Bai, use WATERWORXX, main reason: first owner is my friend. second: cause i know they are good!
3. Amed, Nusa Penida, Gili Selang. You can do this with Waterworxx.
4. Nusa Penida, if u r leaving from sanur, I suggest go with Bali Scuba. (bit expensive but what u pay is what u get)
5. Menjangan, stay at mimpi resort (really nice place, got hot spring pools), diving from Mimpi or go to Labuan Lalang to charter ur own boat.
In anycase, if u decide to do number 1-4, please mention our club name, so that they know that u are referred by us, maybe u'll get a discount.
have fun and enjoy!!
Cheers,
bodiver13@gmail.com