I LOVE the Palazzo. The hotel itself is pretty but my favorite thing is that the rooms are spacious and gorgeous and look just like Venetian. It is definitely not too extravagant nor unnecessary for me. In fact, I LOVE extravagant and unnecessary haha :)
I love the suite style rooms, they can accomodate groups of 6 really easily with 2 queen beds and a pull out bed and large "L" shaped couch. The bathroom is also really nice and spacious and has a separate toilet room and a small vanity table for getting ready.
The location of the hotel is also fab. Close to the Wynn and Encore (easy access to XS) and the Venetian (yay Tao!) and great for those who love to shop at Fashion Show Mall.