Would you stay in a hostel? In these, most definitely yes! Sometimes I would just want to stay in the hostel, not explore the city I was in! Great post, thanks.

I've stayed in many hostels. Some were gross (but looked decent online), some were very nice, and a fraction of the cost of a local 3 star hotel (which is your other choice if you're in that budget range, really).

What I've often found to be a great compromise is to book at a nice hostel that has dormitory-style rooms, but also private rooms (some en suite, some not). The private rooms at these places are often a fantastic price compared to regular hotels, a great option for the budget-conscious.

While in Europe with a couple girlfriends we stayed at St. Christopher's at the Winston in Amsterdam. It is in the middle of the Red Light District and has some pretty racy decor but each room has been decorated by a local artist. It was definitely the coolest hostel we stayed at our of our entire trip.

http://www.st-christophers.co.uk/amsterdam-hostels/amsterdam-photos

I love hostels. They're so cost efficient.

But... WTF is wrong with those beds in the last picture?!

Absolutely love hostels. Used them in Europe, Canada, even US, although most in US are not HI-affiliated. (There are some really cool ones in the USA if you look around, though.) I've done the YMCA thing in the US, too. There are still Y's renting rooms in some cities--it's like a hostel with a private room, cheaper than a downtown hotel for sure, and less busy than hostel... but also without the organized activities.

Oh, and the shower facilities at the Y did not live up to my Village People-inspired fears/fantasies. (Nicer than most hostels, too.)

I guess it would be fair to say in closing than the US motel, for the car user, offers a cheaper price and better value than most hostels. I have paid as little as $30/night plus tax to get a large private room with private bath, room service (remember to tip--they get min. wage), cable TV, A/C (some hostels lack this), AND FREE BREAKFAST. (Sometimes "continental" but with the Indian-owned ones it's usually something decent... one place had CYO waffles.) But you need to come in a car.

would i stay in a hostel? i lived out of them for 6 months of my life. loved them. still do.
sometimes it's a crap shoot, but it's all part of the adventure, right? :)

580sqftofbliss mentioned HI-affiliation. This is key. I've stayed in all sorts of hostels all over Europe. Toward the end of trips, running out of money, I steered away from my knowledge that Hostelling International ones are the only ones to go with and I got bugged. Literally.
Go with HI affiliation and you will be secure in knowing that your hostel will be clean and secure and free of insects (even if it costs a bit more).
The people that you meet in hostels are full of great traveling stories and often, the people who run the hostels are willing to show you the best places in town.
The one in Killarney, IRE was great: in an old castle on great, huge grounds.