I like to circle back when I request assistance and finally take the trip. Due to several factors, we ended up going to Bonaire in December 2014 when I originally posted this thread based on expectations of going to Coz. However, we recently returned from a great week of diving in Coz and we took the advice of many divers and stayed AI at the Palace. The place was perfect for what we needed. The focus of the trip was diving every day so we never left the resort. We will definitely return to Cozumel and will either stay at the Palace, the Presidente or Secrets.
Very subjective but I would say the food at the Palace was between fair and good. Not excellent but for the price, I felt like we got good value at the resort. We dove with Living Underwater. Great operation, true valet diving and only 4-6 divers total on the boat every day. Steel tanks provided a LOT of bottom time. Thank you to all who provided advice and if I can be of assistance, PM me.