Yes, Nida is everything mentioned, but it's probably the most expensive place to stay in Lithuania. Nida's restaurants are really the only ones that will reliably have German menus, and the prices really do anticipate German wallets. True, a full meal will seldom cost more than 20 euros, but consider that the minimun wage in Lithuania is ONLY about 230 euros. A meal that would cost you 3 or 4 euros in Vilnius will cost you 6 or seven here... don't chalk it up to the logistics.
If you can speak Russian, and/or Lithuanian, you could easily find a room in many of the private homes that offer rooms for rent for well under 20 euro, but cash only... they'll usually include a shower, sometimes a kitchen, and often loud neighbors who are usually quite friendly, as well as drunk.
Be ready to walk though, and uphill... the sea side of the town is a few kilometers from the lagoon side. Take the path up the hill in the woods, and get a picture, and maybe a view, from the lighthouse area, as well as some chanterelles in the woods.
The mosquitos in the town are known for their vampiric ferocity in the evening. Bring plenty of repellent.
Juodkrante, just up the road, is where Lithuanians go on the Spit for their vacation... it's a bit more affordable, and "off the road."

Reply