The Palazzo is a nice hotel. It's right in the mix, being connected to the Sands Convention Center and Venetian Hotel so there's always something to do. If you stay here, the Venetian, or the Venezia, you pretty much get the same experience, so check all three for the best rates. They're all just three hotel towers jetting up from a single pedestal of Casino Level (Floor 1) and Retail Level (Floor 2).
They have a huge spa, great pool area, and the restaurants are awesome - my favorite being the CUT Steakhouse.
The rooms are all very nice. They don't actually call any of them rooms, but rather suites, and it shows.