Stayed at the Badrutt's Palace few days ago and found a very nice hotel, notwithstanding some bad reports here on flyertalk.
The Palace is considered the best hotel in St. Moritz and one of the best in Switzerland, and I fully agree. The most part of the rooms are renovated. During my visit only a partial spa and fitness facilities due to a large multi-year renovation (all the new facilities available from winter 2009).
Upon arrival the bell boy took care of the luggage and parked my car in the private parking. Very friendly, fast and professional early check-in and I was escorted to my room. The butler greeted me out of the room and explained me all the facilities and amenities available. I booked a standard room city view and was upgraded to a junior suite lake view with large balcony. The room was on the top floor and appeared recently renovated (even if it is not on the list of the renovated rooms). Large marble bathroom and good toiletries (exclusive for Badrutt's), two large LCD Tv screens and a DVD player.
The fares are unquestionably high (for a double room, rates starting at 365 SFr. - 240 EUR) but they are in the average of any other 5 stars luxury hotel in the area and include a rich breakfast for two. In the room rate is also included the free minibar restocked daily (2 bottles of natural mineral water, 2 sparkling mineral water, 2 coke, 1 diet coke, 1 orangina, 2 schewppes and 2 beers), a beverage value of about 40-50 EUR in any other hotel. Also included free movies, free DVDs rental, butler service for every room, valet parking, free use of business center (5 PC workstations and a color printer), free use of tennis courts and fitness facilities with personal trainer and a card for free use of public transportation in the area, including cable cars and the famous red Ratische Bahn train. You have only to pay for bar and restaurants. I didn't try hotel restaurants, but look at the prices and they are in the range of about 40-60 EUR for a three course dinner (excluding beverages). I higly reccomend this historical hotel, with wonderful public spaces.