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I've stayed at the Madonna Inn. Other than about 15 minutes of kitsch factor there is very little to recommend it (and it isn't like you get to see the other rooms, just your own).
I found the service to be poor (and surly). Also, there is the unexpected habit of women walking into the men's room at the restaurant to see the waterfall. They're not always so good at having someone check for them before coming in.
[The group I was with was kicked out on our second night there (righfully so) but I was already unimpressed with it after the first day there.]
I'm sad that the miniature golf course ("World's Toughest" it said and it must have been close to correct) in Morro Bay is gone.
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