Not as bad as people say.
You can imagine apprehensive I was about staying at Luxor while on my first trip to Las Vegas. Based on the reviews on this site, I was expecting a dump. But when I got there I was pleasantly surprised. Check-in was a breeze, even though I had to pay the famous "resort fees" associated with MGM properties.
I booked a Pyramid room and it wasn't bad. Two queen beds with a large shower and clean bathroom. Fresh towels and toiletries every morning (or should I say, afternoon). Once you got the lay of the hotel, getting around in the casino or the Atrium level is easy enough.
The thing to remember about Luxor is that it isn't the Bellagio. When you pay the kind of rates that Luxor charges, don't expect the Bellagio either. It is what it is, a room inside of a giant pyramid. If you want a nicer room, spend more money and book a room somewhere else.
The pool was nice, plenty of misters all around and the water was a nice temperature to take the sting out of August Vegas sun.
Yes, the location is pretty bad if you want to cruise the Strip but all in all, for the price you end up paying it's a good place to stay. I would recommend it for "Vegas Virgins" as it's a good "starting point" price-wise.