Make sure you get one of the rooms with views of the Strip and the Bellagio fountains. I think it's the west tower that has the best views. If you get the corner wrap around balcony it's really a breathtaking view.
We ended up getting a great deal at the Luxor, since it's March Madness, the rooms almost doubled in price. We were lucky to get three nights for under $300. We did look at the Cosmo and I definitely want to stay there one of these days.
I would recommend you come to the Blue Lagoon directly from the airport if your flight arrives at 7,8,9 in the morning. Hotel Check-in is not until 3pm and this place will relax your mind a body from the over night flight.
BEEN THERE!! and yes it is real. Place was made by a guy they call " Crazy King Ludwig" the dude spend millions building it i think it was finally finished close to the 1900 - well after the time of castes. ( thus the name "Crazy Ludwig")