Lately we have been doing a lot of looking / research into flooring and have found you can find nice hardwood and/or Engineered hardwood for the price of good laminate. If you go the laminate route make sure you go with something at least 12mm (that's including the attached pad). That thickness really helps with deadening that horrible "fake tappy" sound Buzz alluded to. Drop a set of car keys on cheap lam and it makes a sound like an explosion.
As far as water damage, laminate is just as susceptible, if not more, than hardwood. If water gets into the seams of cheap lam, it swells the sublaminate. Then you get a warped and swollen seam that you can't sand away. The better laminates have waxed joints to help prevent this.

Of course, your best bet is to ask the professionals. I'm not a doctor, I just play one on tv