If you're looking for a really cheap hostel, and that's it, then Chili Hostel is a good contender. But if you have even moderate standards for cleanliness and hospitality, then it's definitely worth it to spend the extra bucks on a slightly more expensive place.
The kitchen was absolutely filthy. It's what we first saw when we were waiting for our rooms, which didn't set a very good tone. We had plenty of time to evaluate it since the incompetent staff couldn't care less that we had to wait 30 minutes to check in (because of a "shift change"). In our room, we found dirty dishes with mold growing in them, which made us think twice about the supposedly "clean linens" on our beds.
Restrooms were unpredictable, and most without hot running water. Cold showers and waiting got really old after a while. Not to mention, the teeny bopper night club just below the window that kept sleep at bay til the week hours of the morning.
Unless you're really just dirt poor, I'd keep looking.
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