First of all, there are several KL hotel threads in this forum.

Second of all, it is a total myth that the Hilton is a horrible location "unless you want to spend all your time in cabs." The Hilton/Le Meridien is right across from the train station, which houses subway lines that can take you to Chinatown, Little India, and KLCC in minutes. Furthermore, it is about 250 meters away from the monorail, which will take you to Bukit Bintang in minutes. Additionally, it is a 5 minute cab ride from the swinging expat hangout neighborhood of Bangsar. Finally, the train trip to/from the airport is awesome since you're right at the Hilton/Meridien when you get into town.

IMO the MO is totally tired. Rooms are old and worn. The service is inadequate. The location, IMO, has an inferior location unless you want to hang out in the mall all day. You have to take a cab to Bukit Bintang 'cause it's too far to walk in that heat and there's no public transportation.

If you want "location" above all stay at one of the Bukit Bintang hotels. But I think the best hotels are the Hilton/Le Meridien, and their location is fine.