Greece has amazing accomondations. It's easy to find a nice bed and breakfast and the options are bountiful. One thing to remember though, you can't flush toilet paper down the toilet. You have to put it in the trash bin. This is true for most parts of Greece but especially Santorini because the pipes are small and rustic and built into the windy cliffs. Yeah, takes a bit of getting used to. The views make up for it, just make sure you choose a space that's central to main attractions and has a sea view.
I opted for bed and breakfast places rather than traditional hotels because of well, breakfast, duh, and because they are affordable and accessible.
Most of the hotels are blue and white to match the Greek flag and outside walls with nice amenities like this blow dry and air conditioning and warm water.