I stayed there a few months ago. Frankly, the check-in was handled really poorly and the inital service was so-so. (Given a dirty all-ready-occupied room, bellhop didn't take us to our room, had to make several trips back and forth with our luggage, to fix the problem, etc. - no the sort of 'seamless' check-in advertised.) As a result the resort fee was waived for our stay. A few other annoying things - like hammocks near the pool area being put away at 4 or 5 pm (can't watch the sunset or enjoy the evening breezes), marginal service around the pool.
The location of the hotel is nice. As golds we were upgraded to an ocean front room. In the evening there is live Hawaiian music and free Mai-tais. The resort fee included contiental breakfast which was pretty good (coffee, juice, a few different types of breakfast breads) There are several resturants in the area too. Kauai Revealed is a great guide book if you are looking for one.
Since I'm going back to Kauai next week I'll either be back at the Sheraton or at the Princeville (which costs twice as much - making another stay at the Sheraton more likely). So - obviously it wasn't so terrible that I'd never go back.