When we had to leave this hostel to travel to other areas of Panama we were sad - it was like saying good by to our home. We felt really safe there, and it was clean and bright, with a great balcony (including a small table and chairs).
I found it to be quite quiet here (except on Friday and Sat nights).
The owners do smoke, and they don't prevent guests from smoking in the rooms, but because of the new law in Panama that you can't smoke indoors in public areas we didn't find it to be an issue in the common areas, and after a few hours with the doors open our place smelled fresh.
I would definitely recommend this hostel. Great value. Good vibe.