I use Priceline often for hotels and have had no issues. I've done better with Priceline often than when I can go to a site and see the places, a la Expedia and such. Then again, with the Expedia-esque sites, I knew what I was getting into, and can't complain if something's a dump, 'cause I expected it to be.
With Priceline though, the hotels have always been at least the star level they said it would be, and a few times even better. Also, in an area like Anaheim, they break up the various neighborhoods so well that you can pretty well determine where exactly you want to be.
An example: I leave Friday for DL and me and my friends are staying Sat-Tues at PPH. However, we booked Friday night via Priceline, and we're staying on Harbour at one of the Maingate hotels, $52 total for the night. The interesting bit will be though that we're three and the rooms are garunteed for two. But as we'll need two beds anyway, I don't expect a problem.