We loved our stay in Marrakesh - but I'd say it is not for everybody. There is a lot of poverty around, a lot of litter, and a lot of harassment of tourists, day in, day out. We stayed for 2 weeks, 1 week in a all-inclusive resort on the outskirts - very nice, but surrounded by wasteland and huts and sheds where young children looked after goats. Then one week in a small Ryad (Ryad Shalimar) near the centre. That was lovely, only 6 rooms- but with sharp climbing stairs (so no good if you have very bad knees) - the rooms on 1st floor were the nicest, with a typical morroccan recessed lounge area in the middle of the floor to read and rest, and a terrasse on top. Very reasonable too - and Youseff the young manager spoke very good English. Access is via some drjerb, typical narrow pedestrian streets, which can be a bit scary - take a torch! Lots of kids and old ladies sitting out in the evenings to cool down, crochet and natter.
We took trips to the desert and mountains, and the red bus around Marrakesh- and walked all around the souks, easy to get lost!