As far as many visitors to NYC are concerned, Times Square is the center of all the action. It is the place that is convenient to everything. Simply, it is the place to be. Should you stay here....well, that depends on your own tastes.
I go back to the days when Times Square was a seedy area of porno theaters and peep shows. Lots of drugs seemed to change hands. It was where teens went for fake IDs. Prostitutes plied their trade, and normal folks stayed away. And then, the area changed. The sex trade was forced out and Disney muscled their way in. Times Square became a place where hotels sprung up and the tourists replaced the prostitutes. And yet, normal New Yorkers still stayed away.
Times Square does have its advantages. The lights after dark are spectacular. You can walk to many different wonderful locations like Grand Central, Central Park and Macys. And, the subway connections are great. There are now lots of places to sit outdoors in the area. You can see a show and walk home. For those who like the bright lights and the hustle and bustle, this may be a great place to stay.
But, the area has its disadvantages as well. First, since its Disneyfication, it seems to lack some authenticity as a NY neighborhood. If you want to go out and have a drink with the locals, you will not find them here. New Yorkers will come in for a show, or maybe to work, but then we retreat to our own neighborhoods or head elsewhere in the City. The food scene [other than Virgils] is mediocre at best, and is comprised of mainly fast food and chain restaurants. The area is mercilessly crowded both day and night.
Should you stay here? Well, I guess the first question is whether you got a great deal on a hotel. But, for those who like a more quiet place to stay, other areas include Downtown and Greenwhich Village. For those who want a more authentic neighborhood, places like Soho, the Upper West Side and Park Slope come to mind. Of course, the choice is yours.
Remember, wherever you do end up staying, there is no such thing as a hotel that is "near everything", and the real key is being near a subway.