We recently stayed at the Palazzo as it just opened and it kicked ass! Being that we are 'players' at the Venetian, we were comped a suite at the Palazzo and it was super sweet ~ As soon as we arrived in Vegas, both of us came down with Bronchitis :( But, I have to say, if I was going to be stuck in a hotel room, this was a good place for it. The suite was huge and very quiet and comfortable.
Once we did venture out, the Casino was fun and inviting. The dealers were personable and made it fun to play there. Even though we eventually lost (as expected), at least we had a good time doing it. The cocktail waitresses were a little slow - but, they're probably still figuring things out as they've only been open a little while.
The Palazzo connects to the Venetian and all the shops and entertainment there and is just across the street from the Wynn. So, if you're tired of the other end of the strip - this place is cool.