I often put folks closer to downtown Monterey, at the Days Inn on Abrego St behind the Denny’s. For an average of $70 a night on week days, not terrible, and close to food and groceries. It’s a 40min walk to the Aquarium from there along the coastal trail. Or you can take bus 1, 2, A or B.
Downtown; I like the Fieldwork Brewery for outdoor space and NA beers (also regular beers), Captain + Stoker coffee, Turn 12 sports bar (food is surprisingly good and late night.. late for Monterey). Alvarado Street Brewery for good pub style food. Ocean Sushi Deli for takeout sushi and decent curry and tonkatsu rice. Great Wall for the best Chinese downtown (good for veg and GF also, you just have to ask to clarify). Ad Astra for bread and pastries and coffee. Revival ice cream for honeycomb ice cream.
I prefer eating in Seaside and Marina: Butter house (Filipino American breakfast spot, so pancakes but also fried rice), Ho Wah (best wings and crab Rangoon), Barba Azul (Sinaloan seafood), tacos at Santa Fe (a grocery store). Best halal food at Monterey Halal Market over there too.
If you have to pick a tourist spot on the wharf just go to Old Fisherman grotto. Very good chowder and seafood.