The W San Diego is about a 10-minute walk to Horton Plaza mall and the Gaslamp Quarter, located in a quiet area near the county jail and some homeless people. They are quite harmless but it might be a bit disconcerting for families.
The staff are generally friendly, but I found some to be snobbish.
Standard rooms are on the small side, but the Cool Corner rooms and standard suites offer a lot of space. All room types have DVD players but there is a charge to take out a DVD from the hotel library, so consider bringing your own DVDs. All rooms also provide Bliss toiletries, so leave some room in your luggage!
The Cool Corner rooms have a large bath tub complete with bath bomb and loofah, while standard suites include plasma TV and sofa.
The gym and pool are very small and not very practical, but consider checking out the rooftop bar called The Beach, which has a firepit, heated sand, and cabanas.
Room rates are on the high side (usually from $270 per night), but all hotels in San Diego are overpriced anyway. I'd recommend staying in the hotel at least one night to try it out.
A tip: the lobby area has free wireless Internet, as are rooms in the first 3 levels.