We stayed at the Hilton Sorrento Palace because I was using points. Not a very "authentic" Italian option, I know. But I was happy with my stay. The pool is huge and very impressive. It was about a 10 minute walk to the main drag and a ten minute walk to the Circumvesuviana station. The walk to the hotel is up hill for the final stretch. With the luggage, it was not a lot of fun. But without luggage, it was a nice opportunity to burn off dinner/wine/gelato. I agree the town of Sorrento is walkable.
As someone else stated, you definitely pay a premium price for taxis in Sorrento and to take you to/from the towns on the Amalfi coast. Parking is scarce in most of the Amalfi coast towns, a little better in Sorrento. And there is pretty much only one main road. So you definitely pay more for the convenience of a taxi.
Depending on the number of people with you and your plans, you may consider hiring a private car service and working that into a day trip or sight seeing excursion. There might be a time for you when taxis are your best option depending on your budget. But if you plan on just taking taxis everywhere, it will be very expensive.