PROS - incredibly beautiful view, really nice women who run the place (who will make you a nice dinner at the hotel even), air conditioner in room works well
CONS - worse mattress we had in Italy and could feel the springs (all other mattresses we had in Italy were great - being firm foam mattresses).  We are big hikers but the stairs do get to you.. counted 853 down to Amalfi (where you need to go to catch the buses to anywhere outside Amalfi) or 300+ stairs up where you can catch a bus to Amalfi. But Amalfi Coast is all up high with many stairs everywhere. They did install a  lift if you want to take it with your bags (but its painfully slow..) . TIP: buy a SITA bus pass

Le Palme is a very enjoyable place to unwind for a few nights and enjoy an amazing view of Amalfi and the Mediterranean. It is located on the cliff overlooking the city and the sea. Amalfi city is reachable by foot but as the hotel is located in the middle of the cliff it would be a long walk down the stairs, approximately 20minutes. On the way back you have to take a bus unless you would like to endure approximately an hour climb up the stairs which would not be for the faint hearted. This is an ideal place if you would like to stay in a quiet surrounding, chill on a sun deck and take a dip in a small pool complemented by breathtaking views or take long walks in the cliffs and enjoy the nature. The hotel is not right if you would like to go to the beach as it is not that easily reachable. The beach in Amalfi is far from ideal though, so we found this a much nicer way to enjoy the days. The rooms are small but clean and have all you need. Take mosquito repellant as there are a lot around in the night.
Great place to stop for a few days, enjoy the amazing views and explore the area. Not recommended for the people who find it difficult to walk and climb stairs and don't enjoy moderate sporting activity.

If you want a room with a jacuzzi make sure that you ask for one! The first room they gave me had no jacuzzi. They allowed me to change rooms, but I had to pay 5 euros a night more for the new room. It was worth the five euros! The new room was much larger, it had a jacuzzi and it was much more private (below reception and the veranda where people have breakfast) unlike the first room which wasn't very private at all. The best thing about this hotel was the view, it is unbelievable. The rooms have glass doors that have views over the ocean and there are also many public areas where guests can sit and look at the sea. There is a pool, with views of the ocean, that looked very nice, new and clean.

There are some areas that need serious improvement:

The mattress was inexcusably terrible. The springs were sticking out, it was very uncomfortable. It should have been replaced a long time ago.

The thing that really bothered me about the breakfast was the toastie. The toasties are ham and cheese. I told Sonia that I can't eat pork and asked if I could have just cheese for the remaining mornings. On the last morning I pulled my toastie apart because I like to stretch the melted cheese, old habit. When I did this I saw little bits of ham stuck throughout the cheese. I'd specifically asked if the toastie was just cheese and Sonia said it was. This was not true, I wouldn't have noticed if I didn't pull it apart and have a look. So, watch out if you're Jewish, Muslim, Hindu, vegetarian etc.

The furniture and linen really need to be updated. The furnishings were dated and tatty.

Notes on location:

I probably wont return to village of Amalfi itself, it was just way too touristy (tourists with BIG cameras, menus in 5 languages, tour buses everywhere). Le Palme is in a village called Pogerola, above Amalfi. Pogerola is a good base for walks around the area. During my stay I really enjoyed the walks and I'd return to the amalfi coast to hike. It's nice to walk around the small villages on the hills above the Amalfi coast. The best thing that I did during my stay was to walk from Ravello to Atrani (through Valle del Dragone). It was such a beautiful walk, the material that dreams come from!

Be very careful when taking someone who cannot climb stairs. There is a stair lift but it does not go all the way. There are still 50 steps. Otherwise I agree with everything said below.