I have stayed at the Montana Placer Inn
several times Half a block from Chair 8 / Gondola, under $200, but no real kitchen, very nice rooms, comfortable and clean, I'll stay here when traveling alone as I eat most meals out. I prefer to stay close to Chair 8 and the Gondola. I have stayed at Viking Village and it is fine, but it is a few more blocks from town. Another centrally located spot that we have stayed at several times is Fall Line Condos
two blocks from Chair 8 / Gondola and even closer to the center of town. Not as updated but I don't need much, these are 2 bedroom full kitchen and living room and priced at under $200 (bargain). We stay here when traveling with the kids to cook breakfast to start the day and save a few bucks. Just my opinion but staying closer to the Gondola / center of town is the way to go. Conditions should be amazing that time of year. The drive from Denver is long 5.5 to 6.5 depending on road conditions and rate of speed.
Will you be in "snootsville"?? Hardly, unless that's the crowd you want to hang with, depends which bar, pub, saloon you choose. Town is expensive especially the realestate, it is a resort town. I enjoy eating dinners out when on vacation. You can find reasonable burgers and pizza, or finer dining if you choose.
Not sure where you are coming from, but flying into Montrose is much more convenient then renting a car and driving back and forth from Denver. (we did the Denver rent and drive once and only once)
Let us know what you think after you go, Hope you like it as much as we do.