We loved it!
I managed to get some return flights at a steal of a price with a weeks accommodation for nothing. We took my parents with us for a week in November one year and although the weather was a bit iffy, we thought it was fabulous.
We stayed in the very small resort of Garajau about 15 minutes out of Funchal town. The hotel was lovely, the resort was quiet but in a great position high on the mountainside with some spectacular views and a fabulous beach at the bottom.