Pros: Gorgeous small Village setting, spectacular views, great food, good skiing including Cervina.
Cons: Hard to reach, expensive.
We have skiied all over North America, yet Zermatt was one of our most spectacular family ski trips ever. Only Aspen in the states could match the setting (but Aspen doesn't have that Matterhorn looming in the distance).
We stayed at one of the Seiler Hotels, the Nicoletta, and loved it - all rooms had views of the Matterhorn and it was centrally located.
We skied over the top three times to Cervina - a nice contrast to Zermatt's slopes - it's a "must do" when in Zermatt. Only do this on nice sunny days with little wind.
Skiing Zermatt is much like Deer Valley in the states - perfectly groomed trails. We loved the powder but found that few Europeans were skiing in it and stuck to the groomed trails.
You can read our complete 10 page review at http://www.gotozermatt.com
Everyone should definitely go to Zermatt and experience the magic of the Matterhorn!