I just stopped by one of their stores this week and I actually thought the furniture looked really good in person. I don't own anything from there, though, so I can't vouch for the quality.
Have you looked at BoConcept? Their stuff is a bit more expensive, though.
i only have one piece of westelm furniture. it's the 3-drawer cutout dresser and i use it in my entryway for mittens, hats, gloves etc. so it doesn't get a lot of "use". i actually think it's pretty well made for the pricepoint... and... i am a quality-snob so that's saying a lot.
i had a LOT of problems with the delivery, however. they had to re-deliver it 3 times before i accepted the piece. so as far as that goes, i'd think twice or three times before ordering from them again.
tara t, you should check out apartmenttherapy.com and do a search. people there review stuff from west elm all the time, so you could get info on the quality of specific pieces. they are pretty honest and thorough, so i would tend to trust the info. from what i have read, it sounds like west elm's customer service is awful, though.
my dining room table is west elm. it's awesome. i think their stuff is good for the price, you just want to avoid going all west elm and looking like you wish you lived in a freaking zen garden.