We went to Dubrovnik (actually stayed in Hotel Croatia in Cavtat) last May with Croatia Tours and had no complaints (other than sharing a charter flight with a bunch of pilgrims!).
€1,000 per person sounds pretty high, we paid around €600 B&B at the end of May for a 5* hotel.
The locals are very friendly, and very tourist oriented (Ireland could learn a thing or two I feel!). Food is good, albeit not much variety (every restaurant offers the same/similar menus), but not exactly cheap.
Beer is cheap and very good.
Shopping is strange-everything is either designer label at Irish type prices, or imitation tack.
We only came across one guy who couldn't speak English, but we were never outside Cavat or Dubrovnik.
One problem-the lack of 'proper' sandy beaches-everything is rocky.
Beautiful area, friendly people, cheap beer, good weather. A good place to visit.