I have to echo what others have said: Service and staff at this property are outstanding as are the pool and grounds. The rooms however are very tired and done very cheaply (dare I say a bit tacky?). It's clear that the owners do not want to upgrade the facilities and that is a real shame because it is desperately needed. That said, I would not dissuade anyone from staying here as long as you understand that the rooms are very basic. I found the location to be ideal as the neighborhood is very nice and safe but every place you would want to go is walkable.
As far as the hammam: it is no longer offered for free to Platinums and the prices are not very enticing. There are so many other options in Marrakech though that this is not too big a deal.