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I have. But there is a caveat- don't get too excited over these $4 an hour rooms. They are dorm rooms for 20 men teams of backpackers coming in all at once.
I now know a hotel in Manila that is $12 a night. And there is a kitchen, color TV, fridge, a bathtub, unreal. Got a hotel in Oz for $22 a night!
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True, you don't need hostels in Manila. Hotels are the same price and you get privacy and a place to bring a girl home. You can meet girls there and not have to be lonely so that you need to socialize with backpackers.
In Europe, the hostels are a good deal though, cause the hotels are more expensive. And it's easy to meet and socialize with the backpackers there, and arrange outings with them.
Another good hostel site is http://www.hostels.com
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There are many hostel booking sites. Almost all hostels have this capability because the 20-something backpackers all require internet access so most hostels have a cubbyhole with 2 or 3 machines for people to log on and get local information. Thus the hostels are all wired.
While they do have groups of people that show up enmasse they are a great way to meet people from other countries and find temporary friends to hang out with. They are also an excellent source to network when you work in that city.