I stopped in here between a haircut and work. I've been walking past it for years and haven't gone in until now, and I wish I had. I'll miss it when I leave the city.
Yes, the place is a bit of a dive, high-ceilinged and with the look of an industrial bakery that happens to have tables. The bagels and other goodies are on big wire racks past the cash register. Pick your bagel and take it to the deli counter staff to have it made into a sandwich. Try the cream cheese with the lox already mixed in -- it's half the price of having sliced lox on your bagel, and is still a good dose of salmon.
These are New York style bagels -- if you're used to the chewy, dense, lembas-like Montreal bagels from Bagel House or St. Urbain, these will look positively plump and fluffy. Don't be alarmed, they're just as tasty. Follow it up with some sweet pastries (the cream horn filled with something resembling vanilla pudding is actually really lovely) and a better-than-I-expected coffee.