Hakone on budget travel

Hi, I'm traveling to Tokyo first time and wondering if I should go to Hakone.

If I'm on a budget travel and can't afford to stay in ryokan etc is it still worthy to go?

Does anyone know any good budget backpacker style hostel or guesthouse?

If I show you a Japanese style hotel with two great meals with full onsen experience, Are you willing to pay a little more than a business hotel rate in Tokyo?
For less than 10,000yen, you can stay in a tatami room w/private toilet, a large onsen bath(indoor), the view of Ashi Lake from room, Kaiseki dinner and great Japanese and western buffet bf. Nice quiet area for strolling nature parks. The hotel is located farthest from Yumoto but conveniently located with its own bus stop, a few steps to Togendai rope way station & Ashi Lake ship port.
I consider this Hakone Lake Hotel a gem in Hakone. It is not listed in other ryokan/hotel sites except Odakyu Travel as this is a Japanese National Lodge but open to anybody including a solo traveler.
http://www.hakone-lakehotel.com/english/englishindex.htm

I definitely think you should go, Hakone is very nice. Even better if you can stay there.

Hakone Lake Hotel looks like a great deal!
Even cheaper is Moto-Hakone Guest house, 5250 yen for a single room (unlike the Lake Hotel not including meals though). Never stayed there myself.
http://hakone.syuriken.jp/hakone/1/welcomemh.html