Luxor is an amazing place, and we loved every minute. Of course there's a fair amount of hassle on the streets from touts trying to sell you souvenirs or take carriage rides or felucca sails (both of which we did). It's worth Googling about this so you get the picture in advance.
Luxor city has reasonable shops and some good restaurants next to the river.
If you haven't been to Luxor, now is a great time to go. Don't be put off visiting Egypt because of news reports of trouble. That's a VERY long way away, and doesn't affect tourists (we also stayed a week in Cairo).