I have just returned from a brief visit to Venice with my wife and some friends. We stayed in the Palazzo Sant'Angelo and what a great decision that was!!
This is a great hotel, not just because of the nice rooms, the great location or the fantastic little bar - it is the staff! Although it rained throughout our visit the staff did everything they could to make the visit a good one, even lending us some umbrellas to battle the terrible weather.
This is a great place to stay - the views of the Grand Canal are great and you are not far from some really nice restaurants.