I was there in 1992 and have heard it's quite a bit more westernized now, although still less expensive than, say, Vienna.
And the reason you go there instead of Paris is because it costs a whole hell of a lot less... although I'd rather see Jim Morrison's grave than Kafka's.
I really, really liked Prague. Gorgeous city. Liked it better than Budapest. Definitely try to see Krakow, though.