Skied for a few days in Engelberg over new year 2011/12. The resort is easy to get to from any of the main Swiss airports with a regular 1-hourly train service out of Lucern. The village is lovely, very compact and has plenty of ski hire shops, restaurants and bars. There are half a dozen ski bus routes connecting various parts of Engelberg with the Titlis and Brunni lifts (although they do stop for an hour midday). Mountain restauarants are ok (Trubsee is very good).
I think I'd describe Engelberg as a 'reluctant ski resort'. The skiing is very disjointed - Glacier, or up and down Stand, or up and down Jochpass, or isolated Gerschnialp drags, or down to the village on Titlis side, or a few short runs on Brunni. The lifts are efficient though, except for the enormous queues at the Titlis base gondola between 9-11am and the ridiculous Untertrübsee-Obertrübsee 24 people/hour cablecar (what's that all about?!). Everything shuts as soon as there is much wind and pistes are slow to open after any significant snow fall (avalanche risk and what seemed like a shortage of piste bashers).
Overall, Engelberg is ok for a weekend in good weather and/or you like off-piste, but much more than that could get very frustrating.