Dmax,
My husband and I spent a couple of weeks on vacation in northern AZ a couple of years ago. I did a good bit of research into hiking to Havasupai Falls at the time, since we'd heard so much about the beauty of the falls and the great hiking. There are definitely some things you need to research and then make your own decision.

Unless something has changed, there is only one motel in Supai Village, which is about as close as you can get to the trailhead. It isn't the Hilton, but is probably fine for hiker trash who aren't expecting overly much. Here's a link: http://www.abouthavasufalls.com/lodge.html

There are also a couple of campgrounds you could stay at. However, I repeatedly heard many negative things about staying there, all of which had to deal with drug problems and theft. If you choose to stay there, be aware and alert. If you do some online research you will find some disturbing information. We were staying in AZ with some folks a couple of years ago, and they actively discouraged us from visiting the area due to the crime rate and lack of recourse if you are a victim of criminal activity. Theft is common at the trailhead and campground, and there has been one murder on the trail. Keep in mind that if a criminal act occurs, you will be dealing with the tribal police, who from all accounts are stretched pretty thin.
Here is a link that may cause you some concern:
http://www.backpacker.com/june_2007_features_freefall_tragedy_in_the_grand_canyon/articles/11033?page=17
I'm not saying don't go there, but do some research first. We trusted the friends we were staying with, They'd lived in AZ for many years and were familiar with Havasupai Falls. When they told us that drugs and theft were a big problem, we decided not to go there.
You can PM me if you need to discuss anything further.