Well, they did say it's All Inclusive, no?

Just returned from Coz.  Plaza Las Glorious now has "air conditioned"
rooms.  Walls have been removed and nothing replaced them yet.
There is a new condiminium next door but it will be quite a while before
PLG is open for business again.  It is now (Dec 21st) an empty shell
but they are actively working on it.

There are lots of nice places to stay on the island, but there is major
street renovation going on from the downtown to PLG.  Kind of a
mess, but due to be finished in Feb.  Baracuca is just down the street
from PLG, on the ocean, and has all ocean view rooms.

We stayed at Vista Del Mar for about $50 per night (two
weeks) for a room overlooking the street and the sea.  Friends stayed
at the Meson (on the square) for a little less, and we looked at most
of the hotels in the downtown area.  Prices ranges from  $29 per night
for air conditioned room at the Palma Dorado (nice small hotel with
rooms and suites one block from town center  -  suite for two AC,
kitchen, LR, bath and two double beds - $45 -  beds in the suite
we looked at were fabulously soft and comfortable - unusual for Coz)
to $130 for a two bedroom condo that sleeps 8 at the Hacienda San
Migel just north of downtown.

I toured Hotel Meson de San Miguel.  It's on the north side of the
plaza, about 100 yards from Ave. R Melgar.  Recently renovated, nice
rooms.  Compact, but what the heck.  Satellite TV in the room,
internet cafe downstairs, newly retiled pool.  Prices were quite
reasonable, $65/nt during high season.

In Cozumel, I don't think I would stay at an all inclusive.  If I was
there by myself and was only diving I might since most (located South)
dive sites would be closer.  I do like the town square and the festival
on Sunday.  There are many great restaurants that we like to go to.  My
wife likes to shop so PLG was great.  Next time I may go and stay at one
of the hotels the dive shop has packages with.  The all inclusives are
great if your intent is to eat & drink.