While I can't comment on Denaru vs outside Denaru (although I've been told several times the beach is better outside), I find the property quite good.
I wouldn't classify the property as a hole. I was upgraded (as a Plat) to the king/presidential suite. Let's just say the shower 'booth' in the king suite is so big, you run little risk of flooding the bathroom.
As all 3 Starwood properties are next to each other, you can just use the several restaurants in any of these properties. Staff was also great at all 3 properties. Yes, it can get busy, but it's a resort on a resort island.
The only shortcoming of this property is the lack of a decent beach, but that applies to all 3 Starwoods there. If I was to return to Denaru, I'd certainly go back to the Westin over the other 2 Sheratons. I rank the 3 to be Westin, then Sheraton, then the Villas. The 3 properties are targeting different markets. Personally, I find the Westin to be the best.
If you're expecting a white sandy beach holiday, no, Denaru isn't for you. My experience was a lot more positive than those that posted before me.