We had an excellent stay at Mai Khao with family in Nov'12. A 4 night referral offer was taken up by us and we were pleasantly surprised at the quality of the property. The villas are exceptionally well maintained and the staff is quite good. Lots of fun activities for the kids - its a place designed for a family vacation. We were aware that the place is far from the city centre (Patong) however it was a conscious decision to stay here. Local car hire for the duration was cheap and extremely convenient for our trips into the city. The villas are equipped with all amenities including cooking facilities. There is a small convenience store next door (though prices are 2-3 times of regular marts) for supplies - its better (if you have a vehicle) to go down to supermarts and pick up stuff. The room dining was average as the choices are very limited. The Mai Khao beach is amazingly quite and serene. The JW Mariott next door is nice (though crowded and noisy - I prefered Mai Khao resort any day). The sales presentation (if you are on a referral trip) is mandatory and they do try and do a hardsell (buy-now or loose offer type). We did not take it up and they did seem a little miffed.
Nevertheless, overall the trip to Mai Khao was excellent (try to get a room with the plunge pool - its on the ground floor, but I suspect they may want to reserve it for members or paying guests instead of referrals). Don't forget to hire a car if you plan to stay here (the hotel guys arrange it for you)