We really enjoyed our stay at the Narrow Gauge Inn. The staff were unfailingly friendly and very helpful, particularly with a slightly later check-out request.
I would say it is a work in progress for making some updates, but being rustic is a large part of its charm. A better mattress would be a request along with a larger shower compartment, but otherwise, found the accommodations to be quite suitable for a visit to Yosemite.
The onsite restaurant is a bit pricey but the food is very good and the atmosphere very nice. Most entrees are large enough to share, offsetting the higher cost.
We would definitely stay at Narrow Gauge again, if the opportunity presents itself.