We went during the day and it was fairly quiet. We found it very pleasant wandering around and buying spices etc. The views were beautiful and great for photos. I don't think I would be too keen on it in the high season. We didn't stay for the sunset and as it turned out, it failed to materialise anyway.
We are just back from Psalidi which is 3km, 45 mins walk, 6 euros in a taxi, from Kos town. It suited us we were near enough to the town when we wanted it but our hotel was quiet when we need peace. There is nothing much in Psalidi however if you intended spending all your time there.
We found Paradise beach to to be the best on the Island although it was the busiest. I would imagine it to be very busy in high season. It is very safe for kids and there is lots going on to amuse you with the watersport activities.
After reading great reviews here, we went on the Katerina and were not disappointed. It was a great day and well thought out by George the owner and his family. To give details on it would spoil it by giving too much away. There were only 12 people on it the day we went and it was great fun. More than worth the money, in my opinion and I would go back on it again if I returned to Kos.
I stayed at the Panorama hotel from 29th Sept to 5 October. I had no problems with the hotel at all. I found it to be spotless clean, the food was brilliant,the views were great. The common areas were beautiful. I found the reception staff and maids to be very efficient. The bar staff could take lessons in smiling though. The only problems I could forsee would be if you didnt go to dinner fairly early you would have to wait for a table. I would imagine this would be a problem in high season. All in all, I would go to this hotel again even just for the food.