We rented a 2-floor apartment at Iliada Studios for 40 Euro/night for 5 nights. Iliada Studios is beautiful, set on a bluff with a wide patio and a view of the Portara. We had two floors, a kitchenette, small patio downstairs, a balcony upstairs, and two private entrances.
The hotel is on the other side of town from St. George's Beach. The shortest way to town is to walk through the parking area for the Hotel Grotta, down a hill on a dirt path into a parking lot. From there it is a short walk to the harbor and ferry dock. I suggest shoes with good traction for the path to the Grotta, especially going downhill.
Iliada Studios is a good choice if you want a great view on a budget and don't care about being near the beach. It is also a good choice if you want to cook on your own a little and don't need much guidance from the hotelier. We barely saw the owner, although she made a point of stopping in to see us on our last night. She even gave us our money back when her daughter accidentally overcharged us for the balance of our stay, so she was very nice, but just not around much.
I'm not sure I'd stay there again if I were to visit Naxos again. The room was beautiful - it really made us feel like we were in the Cyclades, and it was a great introduction to the islands. But it is a little far from the hustle and bustle of the main town, and although we didn't mind the walk, next time we might want to be closer to the action.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC