It's well worth the cost. And, you are right on about the cheaper costs of hotels and food in town in comparison to other mtn towns. My brother and I stayed in a nice room for under $50/night.
The drive from Denver is closer to 6 hours, depending on the weather. It's actually a bit faster to go down 285 and over through Gunnison as opposed to all the way out I-70 to Grand Jct and down, again weather permitting. If you drive from Denver, I'd suggest going down the day before, skiing at least two days in a row and then driving back up the following day. My bro and I drove back to Denver the evening after one of our ski days and it was hell.
Yes, Red Mtn Pass can be a bit of a doozie (I can't believe I said that) in a storm, but what lies on the other side will make it well worth your while.
If you go, I'd suggest trying to get your own group of 8 together, then you can go your own pace and have a blast. Either way it's a great day.
I haven't talked to many people who've had bad experiences there, but I'm sure there are a few.
Here's a mental picture of my latest voyage there: Driving down on Thursday was a bitch as we were traveling through the finale of a storm and Red Mtn closed right after we got through. Lucky for us, we woke up on Friday to absolute bluebird and the 3+ feet that the storm had left over the past 48 hours. No doubt some of the best days I've ever had.
Can't wait to go back.
Perhaps Silverton would be a good place to have a mini-summit??
I've got more suits than Liberace, but less than Eastvailhucker.
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