The Napolitano is far from being a dump, but there are certainly better hotels on the Malecon. If money is not a problem, then I'd recommend staying at the Renassaince Jaragua, the Inter-Continental or the Melia Santo Domingo. Not in the middle of the action of the Malecon, but located there nevertheless is the Hotel Santo Domingo, a very classy place. Personally, I recommend the Jaragua. For my wedding this past June, I had my US guests (about 26 people) stay there and they LOVED it.
Hope this helps, Natasha