Taormina Sicily

We stayed at Hotel Villa Schuler which meets your requirements. Easy walk up to the main pedestrian street, sweeping views of the coast and Mt. Etna. Included breakfast is ordered from a menu.
Excellent service. Highly recommend. A respite away from the crowds; it also has a large garden.

It depends on how you define "walking distance." We stayed at the Hotel Villa Angela. It was up the (steep) hill from the main city. Via Crucis, the footpath back to the hotel, was strenuous but gorgeous. On my first day there, I found the hike a great way to shake off jet lag. Also, the hotel ran a frequent shuttle to the city. Anyhow, the view of Mt. Etna from our room was spectacular.

The breakfast, the cleanliness, wifi, and other amenities were great, too.

EDIT: I just looked at a map. Villa Ducale is just up the hill from Villa Angela. Both are within walking distance to the town center if you are in good shape. Let me reiterate. It's steep. Just look at the switchbacks on the map between the town and the hotel. I would imagine, though, that the hotel offers a shuttle. Personally, I loved staying up high and didn't mind the walk. The views are magnificent.

Hotel Villa Schuler has one flight of “stairs/steps” to Main Street of town. Not hard at all.

Hotel Continental is right in the city center . The hotel has a deck with great views of the coast and Mt. Etna.

We stayed at Eurostars Monte Tauro in 2014. The view was stunning. The rooms were well appointed and the buffet breakfast was delicious. It was "in walking distance" to the town area. That said, not as close as previously mentioned Hotels up thread.

Hotel Elios on via Bagnoli Croce is where we stayed. Short walk to everything. Owner let us use his parking space for our car in the public parking garage. Excellent views from roof top terrace. The English Garden is just down the road, with great views and photo ops.