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The rooms in "The Hotel", the new building they stuck onto the side of Mandalay, are quite nice. I assume you're talking about Mandalay proper.
I don't think any strip hotels would intentionally make their rooms unappealing now, but perhaps in the past, when they last decorated Mandalay's rooms, that was one of their goals. Vegas marketing strategies shift rather substantially even in ten years time...in the 90s it was all about family-friendly themed hotels, now they're removing many themes and bringing back sin, promoting clubs and higher-end restaurants. In the 80s, I think there was more of an effort to keep people from wasting time in their rooms when they should be gambling.
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