This place is dear to my heart and I've never even been there to hike! My wife and I, before we were married, would take little vacations down to the hotel at Clifty Falls during the off season when they have 2 nights for 1 specials typically during the late fall and winter. The park is beautiful with plenty of trails, beautiful falls and lots of interesting geological features left over from when Indiana was a tropical beach. The restaurant at the hotel is acceptable for dining. The rooms are clean. The staff is friendly, The gift shop is well stocked. While not exactly within walking distance from old town Madison, you're just about three minutes away. The view of the Ohio river from one of the south facing rooms puts one at ease and the white noise generated by the coal plant will make you sleep like a baby.
My family now, several years later, makes the trip here every Thanksgiving to eat the buffet at the Inn and stay for a few nights. I start looking forward to this in about mid July. The wifi service kind of sucks, but, dude, you're at a state park... go your ass on a walk or look out the window or something.