There are regular threads, usually in the Travel Buzz forum, where people explain how they just "use a hotel to sleep in" and always stay in the cheapest hotel available. Proponents of this approach usually make that claim as some sort of badge of honor.
If my only choice was to stay in a cheap hotel or not travel, I would stay in a cheap hotel. But I'm not really happy in a lousy hotel. Right now it can easily ruin a trip for me, so it would take getting used to.
Hence luxury hotels are the safest bet, but I can be quite happy in a good hotel in a decently sized room once my needs (which aren't that complicated) are met. There are only a few places where I regularly use concierge service. And as I am not a beach resort type of person, that rules out a lot of the hotels discussed on this forum.