Yes, the hotel sucks. Just about everything with an exception to location and price, Imperial Palace ranks last (or very close to).
But you know what? This place is cheap. And the location is excellent, right across the street from Bellagio/Caesars Palace. For those visiting Las Vegas on a budget OR those who don't care about the room because you only sleep 2 hours a day, Imperial Palace deserves at least some consideration. Especially for the latter crowd, why not save $ on hotel and splurge at fine restaurant or maybe a show?
5 stars for price/location and 1 star for everything else. My flawed math tells me 3 stars.