Hello DB,
Gotta say that this end of Salou could do with a makeover, but then even three years ago when you visited I would have said that it needed one even back then, unfortunately it never seems to happen.
Once you get to the Salou Princess area then things are much better in my opinion, this is also very central. Maybe the Michelangelo apartments could be a good option? Very central in Salou but still a pleasant area.
I think once you get to this area then its all good all the way down to Cambrils.
I'm staying in the old town area this time down near the Hotel Eurosalou, this area has also seen a lot of investment over the years.
Not quite sure why the Capellans end of town seems to have stagnated? I've even see them throw money at areas less needy than this area. I think it could be because this area of town is only busy in the summer months whereas other areas have residents living there all year round so the money seems to have gone to these areas. Who knows
Anyway, I hope you have a good holiday wherever you decide to stay. Salou is still a great resort, I guess all towns have their more upmarket areas as well as the not so good areas.
Mark