We stayed a few nights at the Hotel Arvor Saint Georges at Easter 2007 and really liked it.
If you google it you'll find various good reviews.
Obviously, it depends on taste, but we thought it was a great deal for (expensive) Paris. It's in the Montmartre area, quite near Sacre Coeur and it was moments away from a Metro station which made it very easy to get about with a 4 and 3 yr old. It was a small, quiet, attractive street - with a small playground just round the corner full of Parisian mums and tots.
It's a very small hotel, but does have a little bar/lounge area to sit in the evening. I like places where I am happy to leave the children upstairs while we sit downstairs, knowing there is only one staircase/entrance and we are right by it. It's done in a fairly trendy, minimalist style, but not in a 'don't touch' way. We liked it, but it's not typical French - more Scandinavian?
We stayed in an attic suite with a sofa-bed. Quite rare for Paris. Lovely views over the roof tops. When we went the suite hadn't been done up yet, so it was a bit shabby to be honest, but they've probably finished their renovations by now.
Breakfast was continental style, but I remember thinking it was nice - good cake! Staff were helpful.
It obviously doesn't have the big hotel facilities. It's not grand. It's not in the most obvious tourist hot spot. Depends what you want.
You've made me want to go back now!!! I'd definitely consider staying there again - after a little bit of comparison shopping.