I stayed at the Irinna Hotel for a total of 8 weeks during 2001 and for a week and a half in 2002.
Yes - it was a bit basic in some respects but the staff were great! As I was travelling alone, they made me feel like part of the family and I am still in touch with about 3 of them now...probably life long friends!
The food in the restaurant is not that great BUT it's pretty cheap and there is a marvellous taverna just up the road called La Calma. I didn't find being in the flight path annoying at all - quite amusing actually when guests experienced a flight coming in to land for the first time!
It's close to some lovely beaches, and only 10km to Argostoli - an easy ride if you hire a scooter, which I did for all my holidays. OK - so it's not the Ritz BUT it's clean and tidy, has a nice pool, a reasonable taverna for lunch and an OK restaurant for breakfast and dinner. The staff are LOVELY, it's safe and affordable. What more could you ask for? Gosh I miss living in London....it's a very long way to Cephalonia from New Zealand!

PS: I met about 3 couples who have been staying at the Irinna EVERY year for about 20 years! They love the place, love the Island and love the friends they have made over the years.