I know Daniel's Homestay has received some rather negative reviews, but they seem to be from somewhat demanding guests. Yes, the young staff members do enjoy strumming their guitars and a hearty singalong but to complain about local people who live at Daniel's or close by enjoying themselves is, in my opinion, extremely self-righteous. This has got to be some of the cheapest, best value accommodation on Bunaken, so to expect it to be a silent palace is a little pathetic (griping about revelry on New Year's Eve!?). The fact is that a lot of the staff live here, so essentially it's their home, and I believe that should be respected.
Now that my whinge is over, I really do highly recommend Daniel's, and will definitely be coming back.
The bungalows are indeed basic but extremely comfortable, and yes the water is a little salty, but so is everybody else's on the island because the water supply is from a bore. If you don't like the taste when you're brushing your teeth, then perhaps try the simple solution of using water from the dispensers that is available at all times.
The food has been delicious, varied and fresh, and the kitchen staff are extremely friendly. Don't expect a huge breakfast spread, but there's always fresh fruit and toast, fresh fish and veggies for lunch and chicken and veggies for dinner. The dining room is perhaps one of the best parts of Daniel's Homestay. It is a fantastic area for meeting and chatting with fellow travelers and divers. Never hesitate to join a table and even just listen to the fascinating conversations about marine life, Indonesia, and traveling in general.
I dived twice with Daniel's (and would have liked to much more but I'm on a tight budget). From what I can tell it's comparatively very cheap (55 euro for two dives including gear). The guides are fantastic, friendly, helpful and caring (the same staff who enjoy a bit of a singalong later in the day).