We are flying in to Venice for two days and then getting on a cruise. I am trying to find the best location for a hotel or the best hotel for us to book. I prefer that I don't pay a lot for the hotel but location is very frustrating for someone who has not been there.
The big advantage to Google earth and similar programs is that you can see where the hotel is. Generally more centrally located hotels are more convenient and more expensive. And there is no such thing as "the best" just book something that has good reviews and looks convenient on the map.
Try tripadvisor and the lodging recommendations in Rick's guidebook for starters (and the recommendations here)...that will be a good place to begin your hotel search. Many of his picks are centrally located and close to the sites.
Venice is small, while I wouldn't want to haul my luggage over all the canal bridges, you can expect to see the sites easily from anywhere. I would find somewhere near a vaporetto stop, they can take you out of Venice to the docks quite easily. http://www.actv.it/en
Being near a vaporetto stop is very convenient, usually you are no more than a 5 or 10 walk away no matter where you stay. Other factors: How much are you willing to pay and hotel versus B&B? We stayed at a nice B&B a a short walk from the San Zaccaria stop, and 5 minutes from Piazza San Marco for only 90 euros a night. http://www.aitagliapietra.com It was a 20-30 minute vaporetto ride to the train station from the San Zaccaria stop, depending on which route (there are many options). (Venice is really very small.) Even for two days, be sure you buy a vaporetto pass from Hello Venezia. The individual rides are 6.50 euros. A pass will allow you to hop on- hop off when you like and you will save a lot of money. You can buy in advance online for a prepaid discount. Just Google Hello Venezia.