I stayed at the Desert Inn about 7 years ago in a parlor suite and was very please with it. The location was great and from what I remember it was clean, didn't seem to be worn down, and the breakfast was decent since we didn't expect much.
But I stayed again in 2004, this time in a regular room. I was very disappointed. The room was very dark and dirty. The linens needed help. I probably won't be back unless they do some renovating.
I prefer to stay next door at the Carousel Inn. That is my first choice when booking a trip. But they tend to book fast, so I've tried many other properties right along that strip of Harbor. My choices in order are Carousel Inn, BW Park Place Inn, Park Inn, Del Sol, Fairfield, Howard Johnson, Tropicana, Desert Inn.