Hotel: Little National Hotel Sydney
Hotel Review: This is a great hotel that was a great price ($140/night) next to the train station in the center of downtown Sydney. The room is a little small, but was nice, clean and comfortable. The bed (king size) was pressed up against the window, so if anyone wanted to get up in the middle of the night, someone would get crawled over, but otherwise the bed was very comfortable. The bathroom has opaque glass walls, which might make some feel uncomfortable - depending on who you're traveling with...but the staff were really kind, friendly and helpful. It's a quiet and very pretty boutique hotel. 
Sights Visited: Sydney Opera House (great tour - it has multiple venues so that they can have multiple shows happening at once), Sydney Tower (great view of Sydney), Christmas Tree in Martin Place (similar to Rockefeller Center - but I think it is fake...they did play Christmas music while flashing the lights every 15 minutes, Toranga Zoo (one of the nicest zoos I've been too - no cages - and a lot of funky Australian animals - see the pictures below), and the Rocks neighborhood (great pedestrian areas and good for food/drinks).
Restaurants we liked: Ho Jiak and P'Nut Street Noodle
What we think of Sydney so far: Sydney is like the big American city we should have! It's clean, the food is fantastic, the transportation is easy, people are friendly, service is great - if we had to live here - the transition would be very easy. While all the food here has been spectacular, the Asian food has been really amazing. We can't wait for Sydney Part 2, but instead, we have Hobart to look forward to tomorrow!