Last 10 holidays have been AI and only had one bad one - a couple of years ago in Morocco, lovely area, lovely hotel, terrible food.
I think it depends where you go, and how much you are willing to pay. I won't go SC - that's no holiday for me and it's too expensive or too hit and miss to eat out. FB and HB, well you might as well pay the extra and go AI.
Euro countries are just too expensive these days (but then so are the AI's - it would have cost us more for 2 weeks in Greece or Spain than Egypt, DomRep, tunisia etc.
When we lived in Cyprus it was cheaper to book into an AI for the weekend (2 adults, 1 child, Fri lunchtime until Sun eve for £72) than it was to go for a decent meal (2 adults, 1 child, easily ?80). Yes we could have done the cheap and cheerful meze like the locals (?15 per head) but that was at places where on of the courses was chips! Not exactly traditional.
Went to Tunisia last year, hotel was lovely, people were lovely, food was fabulous. When we went to Cuba the only think that was a rip off were the organised tours - we learned our lesson and now speak to the locals wherever we go.
As for culture, meh, I don't care. All I want is 2 weeks quality time with my DD. I want to be able to relax in the sun, swim in the pool and have a few drinks in the evening. DD wants the same (oh and a mini-disco!).
Each to their own.