It's not a bad hotel for the price. Really.
The room I stayed in was fine (save for some odd stains on the curtains), the casino and show offerings are about standard (Carrot Top, Criss Angel), and there's a fairly diverse selection of restaurants.
That said, if you want to drop an extra $40 or $50 a night and stay somewhere else, I'd probably recommend doing that. While I'd take the Luxor over the Imperial Palace, it's certainly no Caesar's or Mandalay Bay.