I have alot of experience with that property, as I stay there several weeks for the past 2 years - including the past couple of weeks. Honestly, I hate it --- its convenient for me to where I work, but the rooms feel cheap and -yes- motelish. The upgrades are no big event (PLAT or GOLD); but the staff is always very nice.
The restaurant (FAZ) is always pretty good.
I usually go out of my way to stay at the W Suites Newark - where I have been spoiled, particularly recently - with some amazing suites, great beds, awesome staff. The only problem is it is about 20 min from where I work and it is also in a remote location.
Im not a big fan of the Sheraton San Jose either.