The Central Station Guesthouse is a brand-new place to stay in Pisa, and it's run by the same woman who manages the more-established Welcome B&B in town. I was meant to be staying at the B&B while here in Pisa: but due to complications caused by fog, I got moved to the guesthouse. I'm not sure if the pricing is permanent — but at the moment, the guesthouse's private rooms are going as cheap as are hostel beds in most other cities in Italy. The guesthouse currently has no street appeal whatsoever — it's on the 3rd floor of an apartment complex, with no sign on the building — but it's in a great location, and it's a very comfortable place to stay.
Rooms: very comfortable private rooms, nice and quiet (despite the main street and the train station being outside), and kept quite clean. Since the place is so new, the amount of furniture in my room even increased during my two nights here — I walked in for my second night, to find a new table, chair and reading light in my room!
People: mainly middle-aged groups or couples — the people you'd expect to find at hotels — but then again, you never know who you'll meet when in Pisa.
Staff: the one lady in charge of the B&B also seems to run this place single-handed (she's going to need some help soon, though), and she's very friendly and accommodating.
Location: across the road from Pisa Centrale train station, and within easy walking distance of the historic centre and the Tower itself.
Food / Internet: unlike the B&B, no breakfast provided; but also unlike the B&B, there is a fully-equipped kitchen for all your cooking needs. No Internet — but reasonably-priced cafes can be found nearby.
Hot water: quite reliable — shower all day if you want. What do you think this is, a crappy youth hostel or something? :P