Short and sweet: John's Restaurant is *the* place for breakfast in Palm Springs. Classic diner, super-clean, great food, and absurdly low prices.
My wife got the Pancake Combo: 3 pancakes, 3 eggs, bacon or sausage (she opted for sausage). Only $5.25. (I didn't get anything because I knew I'd end up eating some of the pancakes, and I was still stuffed from the previous night's dinner)
The pancakes were perfect--extremely light and fluffy, while the eggs and sausage were great examples of their genre. The sausage weren't the typical links; fat and juicy, with a twist--red pepper flakes to give them an extra kick. The eggs weren't oily or contaminated with grease from previous diners...in fact, my wife noticed that they cooked everything to order, and immediately wiped down the grill as soon as they were done with her food.
I think we've found the place we'll go for breakfast any time we're in Palm Springs. Next time, I'll be trying the country scramble: "Country-style potatoes grilled with peppers, onions, scrambled eggs, cheddar cheese, and your choice of ham, bacon, sausage, mushroom, chicken breast, or turkey breast." Total cost? $6.95.