Hi Noushkey,
I personally dont think it would make much difference which bank you stay on for accessibility of the sights. Its a bit "swings and roundabouts".
The passenger ferry operates all day and is very fast and cheap to get across the river. I believe all the major hotels that are on the river offer a water taxi service as well. For your information the two major temples and the museum are on the east bank and The Valley of the Kings, ditto Queens and various other must sees are on the west bank.
I would love to stay on the west bank, just to get a different perspective of Luxor after always having stayed on the east bank. Despite the odd "iffy" revue, I am determined to try the Al Moudira next visit!