I was surprisingly impressed with the Sheraton New York Towers as well. I live in Queens, NY but decided to use a free weekend night just before Christmas. I was given a nice suite...one with a double door! The living room was quite large, with a round dining table, a sofa bed, 2 matching sofa chairs, a mini refrigerator, 2 bathrooms, a separate bed room, an office and 3 tvs. Most of the room decor seemed newly renovated.

I agree with iluvcitibank in that a nice upgrade really does influence ones stay to be either excellent or mediocre. However, I think I would've given this hotel the thumbs up for the excellent lounge as mentioned by the op.
The folks in the lounge were very attentive and helpful and the food selection was excellent although I did not see the krispy kreme donuts during my stay.

I use to work in this area but also agree with op that it is an excellent location especially for touristy activities.