Givat Hatachmoshet (ammunition hill) is very cool - not big, but lots of history and its right off rechov Shmuel hanavi. When we went there, 10 years ago, there was a cool video with a model that showed all the details of the war there. And they offered us a free tour in english by some student there.
Also, for Isreal, renting an apt in the middle of a Jrslm neighborhood is so much better than a hotel. totally different experience. Save the hotel for other places