Do go, it is one of the most amazing things I have ever been to. I found it surreal, just this mass of people dancing to nearly all the genres of house music. Once your out there it is relatively cheap, with the hub of parties between Thursday and Sunday, and is a real chance to see DJ's that don't play here that often, people like DJ Rush, Ellen Allien and Westbam. Whatever type of music you are into, you will be catered for. The vibe is awesome, people may say it has lost the original feeling, but for me having not been there before, it was cool.
Hotels are easy to book in advance, you won't be sleeping much, but I always think it's best to have some where to put your bags and kip if you need to. We stayed at a campsite, about 20 min away from from the center of town, which was cheap and fine. Try to spend as little on a hotel as possible, because you will really be dancing for most of the day and night.
Just go there.