I stayed at the flying pig with 2 friends in November and having not stayed in a hostel before, i was pleasantly surprised. The check-in process is a bit arduous, with people wishing to extend their staying occupying the same space as those who are checking in and out. We had to wait about 15 minutes to be called, but the staff were friendly.
We booked a 4 person room so were prepared to share with one stranger, but we weren't expecting that stranger to have his girlfriend in his bunk until about 3am. Slightly awkward as there was a language barrier too, so we just stayed out of their way in the day time. The room itself was clean and the bathroom appeared to have been recently renovated, which put my mind at ease. However, it certainly wasn't cleaned on a daily basis, like you would expect in a hotel and the bed sheet were only changed when there was a new guest booked in to that bed.
I had a top bunk and it was comfortable, aside from the plastic sheet over the mattress. I shudder to think what may have happened to warrant the use of a plastic sheet, but i got used to the noise of it slipping about after the first night. There are also lockers under the beds and as the lock i brought with me didn't fit, I bought one from the bar for about 3 euros.
Our room backed on to the smoking area outside the bar and I think people are exaggerating the noise level to be honest. I'm a very light sleeper, but the noise didn't bother me past midnight. The music isn't that loud and you only get the odd person laughing or talking loudly. Also, yes this is a smoking hostel and that is clearly advertised wherever you look. If you missed that you must be blind. However, the smoking is confined to a back room which is shut off from the bar and the only whiff of it you get is if they leave the door open for a few minutes. My friends and I had a great few evenings in the smoking room, which is cosy and full of friendly people. The bar is busy but not particularly rowdy and feels a bit like a cosy student's union. The drinks are reasonably priced and you can bring food back to eat in the bar, which we did on 2 nights.
There's plenty of cheap eats in the immediate area and a nice cafe directly opposite which does a great breakfast. I never felt threatened during my time in Amsterdam (even in the red light district at night) and it's a very beautiful city. Even if you don't want to do the things that most people go to Amsterdam for, there's plenty of attractions for families. Language was never a problem as everyone speaks English and getting around on foot was super easy once you got used to the thousands of bikes. The hostel is about a 7 minute walk from Centraal station too and it only costs a few euros to and from the airport.
I probably won't stay at the flying pig again, as my husband and I are more likely to fork out for a hotel. The crowd was a bit more backpacker than we're used to. It was a nice experience though and i'm glad I stayed. I'll definitely be returning to Amsterdam in the future!