I have ever only stayed at youth hostel once in my life, that was years ago in Towada Lake in Northern Japan. It was an interesting experience, though I don't have too much desire to stay at Youth Hostels again, mainly because I REALLY need my own restroom.
However, I do understand there are alot of backpackers out there that don't care about sharing restroom, enjoy the lively vibe at youth hostes, and its budget-friendliness.
Today I heard about a new youth hostel opening in Taipei, thought I'd share the news.
http://www.toongmao.com.tw/cute_yh.html
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