In reply to Joedt:
We stayed for 2 weeks in Mellieha at the Pergola (just a relaxing holiday, no climbing) in November. It's justa big hotel but perfectly fine and we got one of the rooms that had a kitchenette, and self catered most days. Our balcony also had a great view, might have been lucky, but I'd suggest asking for a seaview as the inland view ones looked a bit rubbish.
Would recommend it if you see a good cheap offer.
Re: getting about, it's about 45-60 minutes from one end of the main island to the other depending on traffic. Distances are small but the roads are fairly busy and really poor quality. Our hire car was a 2 year old Aygo but totally shafted (clutch gone, everything rattling), I think many of them are like that. So if you don't mind some of that sort of thing, then where you stay isn't a problem.
The ferry to Gozo was easy and relatively fast but cost ~ €20 return with a car so you wouldn't want to do it every day.
Post edited at 22:28