We debated between 2 hotels before we booked, and we are SO happy we chose Villa Huinid. Although it's not downtown, it is beautifully located away from the bustle, and is on a huge property away from road noise. We were a little concerned about being on the fringes of downtown -- but the best advice we could give anyone is not to worry about that, because in Bariloche, it's not about the city center. To see the area, one really needs to book tours, or (as we did) rent a car and really do the circuitos. We had so much fun doing day trips in the area, and we'd highly recommend renting a car if it's in your budget.
Our room was large, bright, and really beautiful. We didn't use the spa in the 5 days we stayed there, but we certainly enjoyed our spa tub each evening in the room. The Reception staff (especially Juan and Alejandra) went out of their way at all times to help us, and they all speak excellent English. The breakfast buffet was excellent, and one could sit either in the buffet room or in the dining room with an expansive view of the lake. On several occasions, we ate dinner in the hotel dining room, and the food and service were quite good. We should mention that although we are a "mature" couple, there were a number of young families staying at the hotel, and it appeared that children were accommodated for.
If we return to Bariloche, which we intend to do, we will most certainly stay at Villa Huinid again. We recommend it without reservation.