We stayed at Palm Resort for only one night, as a jumping-off point to Koh Ngai and Koh Muk. If that's what you're looking for, this is a great place. Basic, but clean. Air conditioning, acceptable bed, refrigerator. For $20-something dollars, it's quite good. But if you're looking for an actual resort for a multiple-day vacation, this is not it. Definitely geared more toward backpackers. In short: If you're looking for a place to crash for a night, this is perfect. If you're looking for more, look elsewhere.
Note: It is farther from Pak Meng Pier than it seems. About a 45-minute walk. There were no taxis available in that area, but the guys working the front desk were nice enough to give us a ride on the back of their scooters. Just a warning that it's not really walking distance.