We had a great time visiting Palau! We took a direct flight from Taipei and landed in what according to locals is their rainy season. It did rain several days, however there were a few sunny days too. Palau is one of the smallest nations of the UN w/ just 22,000 people, so it is not very developed or comercialize, which may be a plus, depending on your taste. The Caroline hotel is about a 30-40 minute drive from the airport, and is a collection of individual bungalows (about 8 small A-frame units), made from native wood located on a hill/rainforest that overlooks the ocean. Lots of palms, tropical flowers, banana trees, pineapples all within steps of your door. There is a small gift shop on the path to the lobby that has a resident cockatiel to converse with as you pass by. The service was generally good, as they delivery breakfast right to your bungalow in the morning, and had the extras we needed to borrow like umbrellas, towels for tours we took, etc. however we had problems with the A/C the first 3 nights we were there.
As a Caroline guest, you have access/shuttle service to a nearby 4 star resort called the Pacific Resort where there is a more western flavor, white sandy beaches, beach service, nice pool area, several resturants, etc. none of which are at the Caroline itself. This is about a 7 minute drive from the Caroline.
Definitely the best part of the entire trip and the reason for going to Palau is the snorkeling/diving. We've been snokeling to several places in the Caribbean like St Thomas, St John, etc., however none compare to Palau. It really is exceptional, with innumerable tropical fish & other sealife, jellyfish lake is a once in a lifetime kind of think swiming around millions of jellyfish that do not sting, and the kayaking & waterfalls in their jungles is magnificent. The people/guides of Sam's Tours are wonderful! Very knowledgeable of the historic WWII sites & relics, also of the oceanography & island history. We did the snorkeling, kayaking & island land tours, each day long tours, and I'd recommend them all. Definitely the highlight of the whole trip! I'd also recommend renting a waterproof digital camera right when you get there. Each day you accumulate pictures and they burn it on a CD all for one price.
For places to eat, we liked the Rock Island cafe. Very informal, has a good selection of american & international, and the service was outstanding. For shopping we did Ben Franklin several times.
Overall, if you're looking to slow down, explore, enjoy & connect with the South Pacific environment, ocean life, etc. we'd recommend Palau.