It's very central, but the streets are generally crowded around there. But it does depend *exactly* where around there it is. You can be quite close and still relatively quiet if it's, say, a dead-end calle not connected to a major through-calle.
Any of the sestiere can be good for staying - I'd go for central Venice rather than an outlying island - but I would opt for sticking away from major streets when possible.
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Any of the sestiere can be good for staying - I'd go for central Venice rather than an outlying island - but I would opt for sticking away from major streets when possible.