You're going to get LOTS of opinions on this, here's my 2 cents.
I've been twice. Each time I stayed south of town. First trip (with spouse) was at Victoria House, second (with brother) at Banana Beach.
Most people (not all) will want to take advantage of the various restaurants, bars, and general fun that happens in and around town. There are lots to choose from and you DO want to sample as many as you can. (Just part of the fun of going to this Island, IMHO).
Staying north of the cut involves an extra step in planning your night in town. Either water taxi or cart rental to get you to/from town. Issues of last trip back (water taxi) or last ferry ride need to be factored in. I hate planning on a vacation. Especially nights out.
One thing I really liked about where I stayed was that getting into town and back to hotel at night was a quick, cheap cab ride or a nice walk along the beach (into town. don't think i could have wobbled all the way home each nite on the beach). Taxis are plentiful, easy to find, and the taxi drivers are a great source of info.
In the end, it's all a matter of your own taste's and styles. Victoria House was a great romatic getaway. I think it would be a wonderful spot to honyemoon. Banana Beach was a great crash pad since we were only spending minimal time in our room. Check out the lodging section of this web page. There are lots of options to consider.