Forget about airline discounts. Use Priceline.com. Bid $30.00 for a three star hotel in the downown area, and as long as there's nothing special going on in town, you'll be pleasantly suprised. I ended up with Courtyard by Marriott on Yonge St. for that price. Anything in central Toronto is easy to get to by public transit. The bus and subway system is easy and efficient.
For eating, Toronto is a awesome. Any type of food you could imagine is there. Really good Asian, and awesome Greek food in Greektown.