It's definitely a trade off. We opted for the same route in Portland. We found a nice B&B tucked into a historical neighborhood but there wasn't much within walking distance and parking was outrageously expensive and not too plentiful downtown. We've learned that, generally, it's best to stay where you can explore the city by foot but Ireland will be the exception next time. I want to stay in the countryside for our next visit.
RE: Red Square, Church Street Marketplace, and Church Street Tavern