My wife and I were there a week ago and also enjoyed our stay very much. Tom and mary Clare run the place very well and are so personable that it's difficult not to feel welcome and "at home".
The room includes a good and healthy breakfast as well as hors d'oeuvres and wine at 4:00. Tom usually walks around filling everyone's glasses.
The guests were of a very varied background. (as one would expect at any other resort naturist or otherwise.) The nights are quiet and we took advantage of their free video library most nights. (The room had a VCR).
The room was spacious and very clean but in need of some updating. (They are in the process of redecorating the rooms. The new rooms are excellent.)
The Terra Cotta is small (17 rooms) which has some advantages as well as disadvantages. Of course the feeling of being welcomed is the main advantage. But on the otherhand it was too small (for me) to spend the whole day there without getting restless. Fortunately there is much to do in the Palm Springs area.
We spent several days hiking Joshua Tree National Park and the Indian Canyons. We also played some great golf courses and ate some great meals in town. The cable car ride and the Living Desert Zoo are also worth doing.
Desert Shadows has a slight advantage in this area because of the multiple pools, weights and tennis. However when we go back we will stay at the Terra Cotta. I miss the place already.