We loved Palazzo. The location, casino, restaurants, are all perfect for us. We've stayed at far cheaper and older places (MGM) as well as nicer places (Mandarin Oriental) but if we were coming back tomorrow, we'd choose Palazzo hands down.
The suite was great and exactly what you'd want in Vegas. Comfortable bed, big tv, huge bathroom. And since their rooms are all suites (I think?) there's an additional living room with sofa, table, tv, etc.
My only complaint, which is so silly, is that I felt like things were dirty. The room itself did look clean, but I'm really easily skeeved out by hotel rooms. I don't know who decided that a black velour sectional in a Vegas hotel room was a good idea. I think from the first day they probably looked old, saggy, and dirty. And so much black marble everywhere only highlighted any glass rings or other "liquid" stains. I touched nothing all weekend.