I don't know anything about their reputation, but while planning my trip I came across this company: http://grosmornehostel.com/adventures/

Newfoundland is not a cheap destination (the Canadian dollar, the price of gas, etc.) but it's certainly not restricted to luxury travellers, either. It's very easy to travel here on your own: there aren't very many roads (hard to get lost), it's not dangerous (unless you lose an argument with a moose), and everyone speaks English (sort of, lol).

You can arrange kayaking or whale-watching tours ahead (the tourism dept. website is newfoundlandlabrador.com), then just go at your own pace. It would be harder if you don't rent a car (and if you do, be sure to reserve it in advance), but there are local buses going down the Southern Shore or out to Bonavista from St. John's.