RDinger, most of the answer is to use the instruments a bit more and the 'visuals' a bit less. Flying (in FS or anywhere else) depends on keeping speed, attitude, trim, power, and all the other variables balanced.
As to the panel position, I rather agree with you that the 'W' position (gauges only) is not a good solution. In the normal view you can lower the panel height in stages by pressing 'Shift/Enter' ('Spacebar' to cancel); I suggest getting the aeroplane flying straight and level and then finding out what lowers the panel to a sensible height for you (usually two or three notches is fine) and then leaving it there.
But holding a good 'landing attitude' depends on getting the power, speed, rate of descent, and trim all balanced. And that depends on regularly scanning the key instruments - just looking out the front won't help much, in fact it can be actively misleading.
The key ones are usually the Artificial Horizon, the Air Speed Indicator, Altimeter, Rate of Climb/Descent, and Engine Power. This picture shows a default 737 on landing approach - the key instruments (from left to right) show that speed is 140 knots, nose is level, I'm banking slightly right, height is 150 feet, descent rate is 600 feet per minute, and power is at 49% N1. The panel also shows that I have the gear and 30 degrees of flap down and that autopilot and autothrottle are disengaged.
Sorry if it all seems complicated, but FS would be no use to us if it was too simple! The Learning Centre will help, look up any default aeroplane and it will show the panel with all the instruments marked. It will also give you recommended landing speeds, flap settings etc. for each type.
In case it helps, here's a tute (which includes the picture above) that takes you right through an ILS landing in a 737. My advice is, set up and save a landing of your own; fly it first of all on ILS, watching the instruments; then progressively phase out the autothrottle and autopilot earlier and earlier in the approach, until you can fly the whole thing manually.
http://www.simviation.com/cgi-bin/yabb2/YaBB.pl?board=COF;action=display;num=1111322151