Phi Phi has a long way to go before it's 'fully recovered'. Alot
depends on what the Thai Gov't manage to do as regards selling the
land. Having said that, an enormous amount has been done, and some
parts of the island and Tonsai area are either pretty normal again, or
well on their way. It's well worth a visit. You can easily have a very
'normal' trip there, and bars, restaurants, dive shops, ATM's are all
very available. I'd say Phi Phi was 50% devastated, 50% normal right
now.

Reefs are 99% undamaged, and diving is certainly good. Don't forget
bad visability and currents now, because of the low season.