We were just off the Magic in October. We attended both a brunch and dinner at Palo. I found the brunch to be OK but IMHO was a little disappointing. I had nothing that really knocked my socks off. The breads were dry, omelet scorched, etc. The buffet was hard to get to at times as there seemed to be a tablefull of people getting their initial "tour" that blocked the tables.
The wife reported her chicken parmesian was excellent.
Dinner was nice but I've had better food in the MDR. The chocolate souffle was underdone. The grand marnier souffle in the MDR was much better. Tenderloin was good but nothing to rave about. The shrimp appitizer was good but again the MDR out performed with tastier, more tender shrimp than in Palo. Again, nothing really impressed me. It was only OK.
On a side note, while waiting for the doors to open for dinner, it was apparent there was a small disagreement going on between two servers. Subdued but obviously heated discussion. Then during brunch one of the cooks had a rather loud "melt-down". Very unprofessional conduct IMHO.
Palo is a nice break from the more noisy and tighter, closer seating in the MDR, but that was the only real benefit I saw. The food was only OK. I came away thinking I'd have just as nice a meal, quiet and private, by ordering room service.