We went here for three things: escape, luxury and relaxation.
Escape: 2.5/5
While somewhat secluded in a wooded area, this ryokan is in the middle of a small town. We had to cross a road that runs between the main hotel grounds and our room. While it's a small-occupancy place, you're packed tightly together. The baths are underneath the rooms, so you can hear people while they're in there.
Luxury: 3/5
The grounds are beautiful, especially at night. The food is well-presented and seems luxurious, but as traditional Japanese food it might leave Western palettes desiring more. The service was fine. The staff was very nice, but weren't really striving to be top notch service. It reminded me more of a Best Western hotel.
The biggest problem is the condition of some of the baths. Two are disgusting and worn down, with the pavement turned black and bath tiles totally missing. I can't believe these are even open; I saw better conditions at a public bath house that cost 500 yen. Others are also worn down, with wood chipped and peeling away and other problems.
Relaxation: 4/5
Ignoring the condition of the baths themselves, they are extremely relaxing. In a normal onsen you have a cold bath nearby, which is my favorite part. No such cold bath here, but we got by. The noise from other rooms, and the proximity of other buildings/cars, makes it difficult to fully escape. But it wasn't so bad.
A big awesome surprise was the walk to the cliffs and waterfall! You must do this.