Based on a review your suggested and other recomended places to stay and if you want to be where they will have it all then stay at The Cozy Inn. But all of the lodgings seem to be very nice and you need to decide which will meet the majority of vacation your needs.
As for Waldo Peppers - you cannot go wrong there and have the
Hot Buttered 
Lobster Roll done like no one else does it! I had one just last week.
