<<" I did read that the town is a bit spoiled by overdevelopment in a few tour books .">>
I don't share that opinion. Instead, I'd say that there are plenty of hotels and restaurants to choose from. After Interlaken, Grindelwald is the most commercialized.
Hotel ratings -
<<"What stopped me was that it is listed as only #14 of all hotels in
Wengen ... I am curious if you have any theories as to why this is?">>
The Beausite Park is considerably more expensive than the Bellevue. Remember that there are some truly grand luxury hotels in Wengen, too.. One theory is that moreexpensive hotels can get higher ratings.... fancier, more amenities,etc. Seems likely to me.
Also, the Bellevue is further from the center of town.
I stayed at the Bellevue in September. I picked it for good rates, excellent kitchen, and excellent views, and considering Kim's recommendation in the link above. It is well managed hotel, with lots of personal attention from the owner/manager Frau Graf-Engi. Well managed for me means carefully managed to control costs without losing comfort or service. I liked that style. If you like grand and luxurious surroundings, the Bellevue is not the place.
The view from the Beausite will be excellent...although I have never been up there, I know the viewing angles. A friend had a chalet not far from there. If it matters, the climb from the station has about 30 meters elevation change.
However, for the best views along the full length of the valley, generally it is believed that you should go to the north end of the village...at the church, or where the Hotel Bellevue is. That has been m y experience, and is why I chose the Bellevue.
My images from September have not been processed, and I had a fair amount of cloudy weather. But , I did get some views similar to the one attached. It was taken from a point almost directly below the Bellevue, near the cograil tracks, and close to the point where the old roadbed diverges from the new roadbed.
The unusually clear weather, found after about 5 or 6 attempts on different visits to Wengen, allowed a view all the way to the end of the valley.
The early morning shot from the (then hotel, now apartment building) "Eiger" shows athe angle more closely resembling what you could get from the center of town, although the Beusite Park is situated higher up the hill.
The Eiger Apartments are right by the train station.