Hospet has more accommodation options than Hampi. Hampi is a bit hippie (read nothing about this in all my research preparation, but observed this when I got there!).
Otherwise, there isnt much else Hospet has to offer other than proximity to Hampi and more accommodation options.
As a tourist, my view is that Hospet is a launching pad for visiting the ruins of Hampi, the capital of the Vijayanagar kingdom.
The ruins are just about 20 minutes drive from the hotel / Hospet, and we can spend 2-3 days. I understand Hospet is an important business area as well, but I am not qualified to comment as I went as a tourist.
One must go to Hospet to see Hampi. All in all, Hospet is a good place to stay for mid-range accomodation.
Good place when you want to visit Hampi Will get an an idea of the village life in the Deccan plateau