Wall of text incoming ...
We stayed here:
Amari Phuket - great views, private jetty for snorkeling, Internet cafe with shared PCs, good aircon, duplex (I think) units (not traditional hotel rooms), couple of bottles complimentary water daily, restaurants if you don't feel like going to town etc.). They have some different sections, but I remember we were upgraded to the self-catering units for free (never used the self-catering facilities though).
I can definitely recommend it, would love to go back. The cost of the flights, hotel stay and breakfast were included in the package. The rest of the meals you can find while exploring the surrounding areas. Get a SIM card when you land there at the airport, with the right amount of data for your stay - can't always rely on hotel / restaurant WiFi.
It's possible to spend about the same on food & drinks / outings / entertainment as you did on the package, but you can also be more spendthrift - e.g. eat food from the vendors, get island tour packages from the actual places / agent booths scattered around town, instead of the hotel etc. I found that when I needed to buy a few t-shirts, the cost after negotiations came out to about the same as MRP (but maybe I'm just bad at negotiating

). Pack moisture wicking shirts and bank on two clothing changes a day (so humid). Also, check the best time to visit - apparently November to April (we went at the end of April). Avoid monsoon season, unless you like lots of rain (and it limits activities, and boat outings / visibility etc.).
When you need to get cash, I'd say do it at the hotel ATM - lots of the money exchange places in town have ridiculous exchange rates. And it's safer at the hotel too.
The Thai beers I tried - Chang & Singha, were both great (although I'm not a beer aficionado) and just what you need on hot and humid day. And of course cheaper than imported ones too.
We'd do a day trip (islands / beaches / scuba / Buddhist temple etc.), and then come back to hotel and get ready to go to out for an evening in Patong. (Btw - the free tour to one of the beaches and then to the Gems Gallery, while interesting, is a chance for them to try sell you some jewellery

)
There are so many amazing restaurants / street vendors. The hotel offered transfers to the nearby
Jungceylon shopping centre, and we'd walk from there. Or if too late, we'd catch a tuk tuk there too.
Usually we'd find a massage place, and then go for supper. And the fruit there was so much tastier because of the tropical climate, plus of course the amazing seafood and Thai dishes

From there on to a bar if so inclined.
Phuket and Patong area is definitely a lot more of a tourist trap, so if you're looking to chill out more then maybe consider a different area. You'll encounter lots of different nationalities, including quite a few Russians, but everyone is friendly and we made a few friends on the outings.
But if you like the nightlife and bar idea, then you want to be closer to Patong. You can get better deals / pricing. We ventured out to
Sri Panwa hotel one evening (an expensive minibus taxi trip (organised via the hotel), with a driver trying to better SA's taxi drivers

), to try to get into a rooftop bar rated as one of the best then (2017), but had to settle for the restaurant there. You had to have made a booking for the bar months in advance. Don't know how it is nowadays. And the meal cost us about double what it would have in Patong.
Look up Bangla Road / walking street - it has a lot of the more 'interesting' nightlife

They make their money on the drinks, but you can negotiate a fixed price per beer, so don't go with the first offer - get a price you're comfortable with (I think we paid double what you'd normally pay in restaurant). Lots of bars in the area too (just keep an eye on your drinks, as is the case anywhere nowadays - unsuspecting patrons can have them spiked, but it was not a problem I encountered).
And yes, always negotiate - if you don't like the price, walk further down the road. We found with the tuk tuk taxis that the price would get cheaper as you got a bit further down (and I think some of them communicated with each other via cell - in that case, try crossing the road for a better price).
I'd check though if the places in Bangla Road, and other parts are open - Google Maps has some of them listed as temporarily closed, but not sure if that is accurate / up-to-date.
Damnit - now I want to go again too