I prefer to stay at a reasonable priced hotel when traveling for pleasure, in the states I don't recall ever paying much over $100 usd a night.
Going to a conference is a luxury in my eyes, after a long flight and being in a European city, I prefer to stay in a top notch hotel, this is an extravagance of sorts. I still attempt to find something reasonable and to be close in to the event. When you factor in the additional fees like transport to the venue, it is sometimes a wash if you save 30-40$ a night as you are giving it to the cabby.
In this case, if there was a comparable hotel saving me a tidy sum that is close, I would most likely choose to stay there and walk to the event. Personally, for Toronto, I would choose $169/night. The view from the meeting is not a factor.
--
"People who are unable to motivate themselves must be content with mediocrity." ~Andrew Carnegie~