Use Priceline's Name-Your-Own-Bid to get a cheap hotel room, and to avoid the hefty resort fees. Check betterbidding.com for what others have paid for the dates you are looking to book. I frequently get 4-star hotels on the strip for $60-80 per night, even on pretty busy weekends.
One thing that we really enjoy is getting a really cheap Priceline room, and then using the $20 trick to get a nicer room and some extra perks. We usually get a nicer strip-view room and a free bottle of champagne, and then enjoy enjoy an evening in our swanky room. See http://thetwentydollartrick.com/ for more details.
I think your plan of not getting a room on Friday night would probably totally work. In fact, I'd try the $20 trick to see if you can get an early check-in to get Saturday's room before the 3 pm check-in time. It would probably work.
Visit the fun and free activities on the strip. My favorites are: Mirage's Volcano, Bellagio's fountains, and the flowers and art at Bellagio.
Some other things that are fun and free are:
- people watching at Fremont
- check out the wildlife habitat at The Flamingo
- visit the Pawn Store's pawn shop (it's kind of touristy now, and the t.v. stars almost certainly won't be there, but they still have some cool items on display in the store)
- relaxing at the pool
- take The Whiskey Experience free class at Vom Fass (Venetian)
- TI's Siren's show (a little adult-oriented last time I visited, just for warning)
- Red Rock hiking
Other things that are fun and cheap:
- visit the Arcade Museum (bring your quarters!)
- visit the Coca-Cola Store and do the Around the World soda and float tastings
- sports betting (bet a couple of dollars on a game, then be very invested in its outcome for a couple of hours)
- visit the Neon Museum (I'll admit I've never tried it, but I've always wanted to and the reviews are good)
I already had my own list from weeks, days ago... :-) Mr. OCC makes it sound like I didn't plan anything. Pssh :-D
Attractions: (don't mind the L's and R's. I was doing by map from north to south...)
L) Lake of Dreams (Wynn)
*free, every half hour from 7 pm-12:30 am
R) Sirens of Treasure Island
*free, shows at 7 pm, 8:30 pm, 10 pm, and 11:30 pm
R) The Volcano (Mirage)
*free, erupts every hour
Garden and Dolphin Habitat (Mirage)
*$17 times vary
L) Streetmosphere (Venetian)
*free, performances throughout day
R) The Fall of Atlantis (Caesars Palace)
*Free, every hour from 10 am to 11 pm
The Aquarium (Caesars Palace)
*free
L) Flamingo Wildlife Habitat (The Flamingo)
*free, open 24 hrs
W*) West on Flamingo (right after Caesar's Palace forum shops)
Masquerade Show (Rio)
*free, ever hour 6 pm-midnight
R) Bellagio Fountains (Bellagio)
*Free, every 30 minutes from 3-8 pm Fri and every 15 minutes Sat/Sun from 8 pm-12 am
Bellagio Conservatory (Bellagio)
*Free, open 24 hrs
L) The Lion Habitat (MGM Grand)
*free, 11 am-10 pm
Shark Reef (Mandalay Bay)
*10 am-10 pm ($18)
By Fremont Street Experience
*free, hourly shows from 6 pm- midnight
$1 million (Binions Horseshoe)
*Free, open 24 hrs
Gold and Silver Pawn Shop
*free