I'm kind of a Cozumel rookie (only been there 28 times in the past 20 years) but I'll add some food for thought here. I've stayed at Scuba Club about 6 or 7 times now.
I once believed that staying at any hotel that included meals was not a good idea because there are so many great restaurants downtown, so I would typically discourage people from staying at places like Scuba Club. Then I actually stayed there myself. The majority of the meals there are absolutely fantastic. I have had a couple not-so-great meals too. I think this is because they are not afraid to try new things. They have an excellent selection of Mexican, Mayan and American food. They have a lot of repeat customers so they attempt to keep things interesting. I'm not that crazy about their salads though. All the salad dressing tastes the same.
The beauty in the way they do things at SCC is that you can actually afford and have time to eat three meals a day, every day because they plan the meals around the diving. They do have an excellent selection too so you don't have to eat the same thing every day. I still stay downtown occasionally and am finding it harder and harder to find a good breakfast that doesn't cost at least $10 in a place that is open early enough so I can eat and catch the dive boats. Food in Cozumel used to be affordable, but its not anymore. By the time you get a sandwich and a coke for lunch, you've spent $15. The price of restaurants on Cozumel has gone up so much that I'm looking at spending at least $50 a day just for food...and I don't eat that much! If you compare the cost of diving, rooms and meals Scuba Club is a real bargain. I spend much less money on the "extras" when I stay there. I do still go into town to get "Bonnie's Special" at El Foco and don't feel like I'm paying twice for food because the package prices at SCC are very low for very high quality. So Scuba Club is perfect when it comes to the dining setup.
I'm not big on shore dives in Cozumel but I have found some pretty interesting critters off the short in front of SCC. Jim Lyle is the SCC shore diving guru and has taken pictures of things I didn't even know existed in Cozumel.
The rooms there are also very nice and comfortable. The Spanish style architecture is nice. I don't like staying in boring hotels with four square walls, especially with people above, below and next to me on both sides. I can do that anywhere. I love that they have 24-hour wireless. All the rooms have a small fridge so you can walk down to the supermarket and stock up on beer, wine, margaritas, and soft drinks if you want to keep things cheaper thank buying drinks in the restaurant. I may be wrong, but I think the reason SCC does not include drinks is because they don't want to charge people for something they may never use while others may totally abuse. Makes sense to me.
Scuba Club is also close enough to town to walk. I've stayed at Presidente and Fiesta Americana and had to cough up $8 for each taxi ride there and back every time I wanted to get away from the isolation of the resorts located way outside of town. Mingling with the local people of Cozumel is one of my favorite reasons for going there.
The dive shop and their boats are also top notch. Some big, some small, some open, some enclosed...whatever you want. Scuba Club is the only resort in Cozumel that has their own on-site dive shop that is owned and operated by the resort. Everyone else uses dive operators that are owned and operated by other companies and they cannot control the quality of the service. Note that not all dive operators are bad, many are very good. I've dived with many times with Aqua Safari, some with Dive House, and once with Deep Exposure and all were excellent. My experiences with Dive Paradangerous and Black Shark I would just as soon forget.
Scuba Club is a dedicated dive resort so typically there are not a lot of vacationing families there that are not divers. This also means no screaming kids running around and peeing in the swimming pool. Sorry moms and dads, but that really is what I want to get away from when I'm on vacation!
Cozumel Palace is also very nice, but it doesn't have much Cozumel personality and is loaded with kids. Might be a good choice if you're planning to bring your family. Its kind of reminds me of the Cancun resorts which I personally don't find all that appealing. The cost is almost twice that of Scuba Club for rooms, meals and diving. About $1100 vs $543 for 5 nights, meals and 4 days of diving. The dive shop there, Aqua Safari is also excellent.
It is for these reasons I chose Scuba Club to conduct my digital uw photo workshops twice a year (next one coming up in August). Its just the best place to stay and dive with in Cozumel (IMHO)!
Bonnie
P.S. Scuba Club is one of my many clients in Cozumel, so I am a bit biased, but I still feel its important to communicate my honest opinion about my experiences there so others can make informed decisions on who they decide to dive and sleep with.