i have been to many resorts in spain and i have found salou (costa Dorada) to one of the best. (in fact i went back 3 times in a row) Costa Dorada is on the up and the price for the hotels are cheap just because there are more hotels becoming available.
I think it depends what time of the season you are planning on going. Due to the Costa Dorada being in North East Spain, the weather can be a bit more temperamental out of the main summer months (not an issue June, July, August & first half of September).
In the height of season, Salou is an extremely busy resort and is the most popular resort for Spanish people on holiday (No 2 is Torremolinos on the Costa Del Sol) therefore quite often high season prices reflect this.
I have had many good holidays in Salou and it is one of my favourite destinations but I have to be honest and say it is a typical Spanish concrete resort. Its not the cleanest resort in Spain even though they are constantly sweeping the streets and the bin men come round three times a day in the height of season.
Salou has a stunning seafront, with a beautiful palm lined prom, the like of which I have not seen elsewhere with fountains, also you can walk around from the prom to some really nice seafront cafes & bars.
The beaches are really clean and very well maintained but in the height of season I guarantee you will never have seen a beach as busy as Salou's in your entire life (you can stroll round to some quieter coves though)
Its a town of two halves like most resorts, with the more English orientated end of town and the more Spanish end of town.
The nightlife can be very lively although it is not known as a club 18-30 resort.
In answer to your original question, no its not going out of fashion but I would say it is definately more seasonal than resorts such as Benidorm and Torremolinos due as you correctly said to the more unreliable weather.
It is also home to a fantastic theme park and they are currently building a golf course and five star hotels nearby so there is a lot of investment coming into this area.
Its basically a resort that you can adapt to suit the type of holiday you want - its quiet in parts, noisy in others, tacky in parts, more upmarket in others.
I would recommend it above a lot of other resorts but I know others that don't think as highly, so like anywhere, one mans heaven is another mans hell.
If you prefer quieter resorts then just down the road from Salou is Cambrils which is more authentic in its atmosphere, you also have the quieter areas of Cap Salou and La Pineda.
The area is also very good for getting out and exploring surrounding places of interest such as Tarragona, Barcelona, Montserrat, Ebro Delta National Park etc.
Have a good holiday, wherever you decide to go.
Mark
Stanley - If you book something on a quieter cove beach in the area I don't think you will be dissapointed. Like Mark said some of the central areas in Salou are a little tacky for my liking but somewhere like Cala Crancs (just outside Pinada) or Cabrils would be nice and quiet with great views and with a bus service in either direction every 10-15 mins you can get around the whole coast very easily. Tarragonna Roman ruins, Barcelona, theme park etc all easily reached.
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