Could use a tune-up
First and foremost, the public spaces in this hotel are beautiful. The front entry, main restaurant, conference rooms, hallways, elevator lobbies - they all ooze class and sophistication. They just don't make them like this anymore. 
The rooms however, are a bit of a let down. It feels like they've just stopped trying. I know a lot of people complain about the walls being paper thin, and this is true. But I sleep with ear plugs so it wasn't an issue for me most of the time, and I realize this is an old hotel. The room wasn't huge, but it was nice enough size with very tall ceilings. Again, size was not an issue for me as I know this is an old hotel. It was a lot of little things around the room which added up. The pillows are ridiculously small - I don't even begin to understand that. There were two phones in our room, one of which had so much static I could barely understand anyone on the line (and them me), and the other just flat out did not work. There was an old phone jack in the bathroom without a phone - I don't know if ours was just missing, or if they just don't have them in the bathrooms anymore. The sheet on the bed had a hole in it, and the towels were clearly of varying age including one that was definitely torn. The caulking between the sink and the backsplash was rather tired and starting to show signs of grime build up. The safety rail in the shower was missing the decorative end cap on one end, and there was what I believe to be squirts of shampoo on the inside of the shower curtain. 
Ate breakfast in the Garden Court restaurant a couple of mornings, and the food was good albeit overpriced.
What I found most appalling about our stay in the hotel was a couple of situations involving staff members. One morning we were enjoying breakfast in the Garden Court restaurant when a friend, who was attending a conference in the hotel, walked by and came in to sit with us for a minute while on a break. She had a small plate of food which she was carrying from the conference which was catered by the hotel. Within seconds of her sitting down the hostess or assistant manager came swooping in and in a less than delicate manner informed her that she could NOT eat that food in the restaurant. This wasn't a bag of McDonald's that she was carrying - it was a small plate of food was provided by the hotel for an event in the hotel, and even had a Palace Hotel cocktail napkin clearly displayed on top of the food to protect it. She was very tactless in her approach, and then continued to watch from a distance to make sure that our friend did not touch the food on that plate. 
The other adverse situation with a staff member occurred in the Pied Piper lounge (incidentally another beautiful public area). We were enjoying drinks around 11:30pm, and with quite a few other people in the bar, we were approached by the waiter and informed that it was last call. He then proceeded to noisily set out coffee mugs, saucers, etc for the next morning on all the empty tables before the bar at midnight. This is a peeve of mine, and is indicative of lazy employees cutting corners and poor management. Another group walked in shortly after that and got a drink at the bar but had no where to sit because all the empty tables had been set up for breakfast. The waiter proceeded to argue with them about how they could not sit down (even though they had ordered and received their drinks) and when they were insistent - rightfully so - that they were going to sit down so he very unprofessionally removed the breakfast setups from the table and slung them on the table next to them. He made it very clear that they were not welcome in his establishment. 
I thought this was supposed to be a classy hotel - it sure looks the part.
Overall:
Public spaces - AMAZING
Private spaces - are being let go and need some serious attention
Staff - Some need better management and a better understanding of what a classy hotel is supposed to be.