I totally missed this post--must be due to non-nonrev chatter threads.
OK--Skip Princes Island/beach experience: IST is not a beach destination. Spend your time wandering around the city. Use Istanbulkart for transport.
I'd minimize your Asia time--take the 12TL ferry (pay attention to departure times) recommended on TA IST forums. BorusTheTaurus and Enigma2007 are your best friends. Also Busy-Retired has a great perspective on IST. Stay away from Istikal Street--Prada yadda yadda...
The Guide to Istanbul's Public Transportation System - Istanbul Forum - TripAdvisor
Do not miss the spice bazaar--best stuff is booth 51. Plenty of other goodies tho. Best meatballs EVER--Tarihi Sultanahmet Koftesi. Right down the street is Mada goat milk ice cream--plain is the BEST!! We tried wet burger--YUK. Loved doner kebab same street(Divanulo?) on tram route Cemberlitas. The street food is fascinating--try the sweetbreads, spit roasted and wrapped w/intestines if you dare--it actually looks tasty and I like sweetbreads. Take good guidebook like Rick Steve's (current one written by 2 others) for self touring. Grand Bazaar is pretty fun--you can bargain for goodies!
I recommend Sultanahmet for small hotels. So many--PM if you want more advice--give me price range, etc.
There is SO MUCH to see--stick to what you really want to see/eat/do or wander around--either will work! Hope that info helps. I am so happy to see someone else soaking up IST.
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