Well, le Pavillon de la Reine is the destination choice of a lot of well-known actors since it's quite private. Kate Winslet goes there. It's very charming but indeed it is no match for the palace hotels.
I definitely prefer the location of the Pavillon de la Reine over the Shangri-La as the district is more interesting. Don't think of parking a car there though.
Staying in a suite at the Pavillon de la Reine should be nice I'd say. Take the SLH card and enjoy a free upgrade if you get lucky.