Me & Mrs Moon go to Rodos twice a year and have never had water issues & we stay at a superb budget end of the market hotel.
Not really noticed any major differences since 'the crash' & the people are lovely, after around 14 trips to the same hotel (always laughed a people doing that sort of thing when I was younger) the staff are now personal friends.
Did Cyprus in January, got the nice week for weather but not my cup of tea, found it a watered down Greece with too many Russians & a bit too plastic in a Canary Is way.
@flyer what sort of accommodation are you looking for? The place we stay at is halfway between the airport & Rhodes in a proper village perfect for non ravers but close enough to get a bus in if that's your bag for a couple of Euros.