My family and I booked two rooms and stayed 2 nights. Our stay was very pleasant while we were there. Some people might complain about the room sizes, but for us it was just fine. The hotel is actually a hotel and a guesthouse, so if you do experience the smaller rooms, you are probably in the guesthouse (which is just as fine). We experienced two types of bathrooms, The one in our room has a standalone shower, the other room had a "shoilet" which means the there is no division for the shower in the room. For people who have never been to Taiwan, these type of bathrooms can be surprising, but it's something that is common (so it was no surprise for us).
The hotel staff was extremely friendly and did their best to help us in any capacity. They explained different fun things you can do around the Sun Moon Lake. There is also a simple breakfast in the morning, but it does the job and fills you up.
Like the listing says, it really is right next to the lake. It's a 30 second walk down a hill and you're right at the dock where you get on the boats to go around the lake. The hotel is also is a very active area. Food, shopping, and other activities are also right next door, so you're never far from something to do.
Overall we enjoyed our stay and if we ever return we'd probably stay here again.