Don't let them choose where you stay...
There are a number of guest house in Hampi and on the other side of the river. Chances are you will rely on your auto rickshaw driver to recommend.
Take their recommendation, but you don't have to give into it. You can check the various places before you settle for what you like.
Also, there are places available with view. So, even if you are taken into this highly crowded area with a multitude of guesthouses, you can always say you want something else. Don't be shy.
Googling places to stay in Hampi and having a list of choices wouldn't hurt.
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Bizarre or Bazaar
Apart from a few shops selling the usual tourist junk, tat and souveniers, points to remember are, the fake guides. Get yourself a good detailed map and do it by cycle (hire is cheap) or a tuk tuk (negotiate the price) to show you around. Also when in the bazaar area, children trying to sell you postcards and pictures, that you've most probally travelled half way round the world to take yourself.
Unique Suggestions: Again, as in most places, a firm but friendly NO usually does the trick, but for 10 rupees you do get a decent strip of postcards.
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