High expectations were soon dropped when I discovered the room I actually booked was not the room I got, despite paying the same price for it, and having mentioned this to reception after seeing my room, it was not the problem of the hotel, but rather the booking agent (booking.com) who incorrectly sells the room (apparently).
La Cabana Machu Picchu Hotel is a basic hotel, and Aquas Calientes being a small town, any location would be a good location. Though it does have the advantage of being near the hot springs just up the hill.
Check-in was messy, despite having reservations and being picked up at the train station they processed those just off the street/walk-ins first (perhaps giving away my reserved room in the process), quoting the same price to all, which made me wonder how fair this process actually was.
I felt bitter but the room was actually decent enough to enjoy, with an outdoor balcony overlooking the alley below, small bathroom but nice hot shower, and very cosy bed. Breakfasts starts at 5am with check-out at 9am, though I think breakfast should be served sooner, as the queue for the buses up to Machu Picchu are already long at 5am.
Wifi worked, it was clean, good size bedroom, comfy beds and outdoor space, it served its purpose for what most people will spend in Aquas Calientes, one night only.