Is this a good place to stay? How about location-wise? How does it compare with other casinos in the area?

We stayed there last winter and thought it was ok. I know that's not a real enthusiastic response but I found all the casino hotels in Tahoe to be just ok. Tahoe is beatiful but not a real casino mecca (IMHO). FYI- if I went back and stayed at one of the casino hotels, I'd stay at Ceasars again. However, next time I'd probably rent a condo and just visit the casinos. enjoy!

Would it be better to stay at a non-casino hotel?

We really enjoyed the Hyatt, which is on the North Shore. Very pretty, much nice than the South area in my opinion.

Caerars is nice, but you can probably find better deals at Harveys or Harrah which are nicer IMO.

I would recommend staying at the Embassy Suites. It's across the street from Caesar's and the other casino hotels, within easy walking distance. It's a really nice hotel that includes a full breakfast and cocktail hour everyday. Very helpful concierge, valet parking, indoor pool, sauna and hot tub and a couple of restaurants. We enjoyed our stay.