Here is my review:
Upon getting the quest update, I got to Battlehorn Castle as quick as I could. Located west of Chorrol where the road ends, I found it under attack by multiple bandits. To my knowledge, I attacked four of them: Two regular Marauders, a Marauder Archer, and the Marauder Warlord. You are aided by Battlehorn Troops but, except for the Warlord who drops a great sword, there is nothing noteworthy about the actual battle. A let-down? A little. Mehrune's razor had an lengthy and extended battle, and while I wasn't expecting something of that scale, I did wish to find the battle for the last DLC, and one called Fighter's Stronghold, in a castle called Battlehorn, to be far more bitter and hard fought. You will note one really stupid thing: The body of the former lord of the Castle on the field of battle in the castle courtyard, yet a really badass shield of his is left in his personal chest at the foot of his bed. Why the hell didn't he use it? It is quite possibly one of the three best shields in the game. He would have lived!
Anywho, you go to the Merchants Inn to purchase your stuff, and all the upgrades are reasonably priced. Is the palce expensive? Sure, but not nearly as much as some houses and this one is a freakin' castle that has many uses.
So, now for a break-down of the upgrades I care about:
Battlehorn Wine Cellar: Gives you a large wine cellar, you also gain the services of a former alchemist who can use ingredients to make brews to improve combat performance. Seems very well done, though you can't create your own brew. Nice upgrade, and if you collect ingredients anyway, this is a boon.
Training Room: Your Orc sparring partner will spar with you. While I don't know if you could accidentaly kill him(Common sense no during sparring sessions, but I didn't take any chances so I just blocked.
) this is still an excellent time to train all your major combat skills. Dwemer Forge: Dissapointment personified. I thought you could train your Armorer skill here, or receive a permanent boost to your skill rating. However, all that happens is your skill is raised by 15 while you are close to the forge. I'm sure lower-armorer skilled players will find this useful for short-range training, but I was expecting something different.
Indeed, there are many more upgrades. All in all, Battlehorn Castle is the best 'house' in the game, with the only other thing coming close is the Priory of the Nine. That one is because you can place Crusader's relics and take them back and have them leveled.
As for the Men-At-Arms...well, kinda pathetic. They wear steel armor and probably have steel weapons. All you'll find in the castle are Iron and Steel weapons, not even sure about Steel. This means that they aren't prime candidates to actually go off and fight by your side, as your foes will likely outclass them in ever level.
Items of note:
Borea:(Warlord's Sword) A good sword. While it may not crack people's list if they Umbra, Goldbrand, or the Crusader's Sword, it is still a good weapon that could make you a nice bundle. The merchant that gets added that you buy the upgrades from will uy it and any other weapon/armor you have, and he does have 2000 gold.
Various armor worn by the Warlord: None of it is too bad, and some of it is actually quite good. I had a debate when it came to the Helmet and one other piece of armor, and that's when I have the whole set of Crusader's Relics at their peak(Better even, thanks to 125 health!) Still, you can make some nice coin or improve yourself here.
Lord K. Bulwark: Incredible shield. Fortifies Health by 40 points, aids Endurance, and does something else. It's defense is the same as the Esc. of Chorrol. Currently, I have this, the Esc. of Chorrol, and the Crusader's Shield. The Crusader's Shield gives me a Def. of 27, but the Esc. reflects much damage, so that was my number one. However, the amount of health the Bulwark fortifies creates a confict. The player can't go wrong.
I just DL'ed the thing an hour ago, so much of this information may prove to be half-truths, I will have misnamed things, and this is by no account a complete review of everything in the castle.
However, it is my honest opinion that while this castle does deliver in most ways, it also falls flat on it's face in others. Why did Lord K. go into battle without his awesome shield? Why are the Men-At-Arms SO poorly armed? How could you be besieged by a handful of Marauders? Why does the Forge suck?
But these are mostly minor gripes. I spent around 14,000 septims and I have a freakin' castle. Honestly, I can't complain that much. Those at low levels will find the armor and weapons found in some places to be a major boon. The Men-At-Arms do at least follow you.
But, most of all, the smith is named Niels and so is a friend of mine.
If you get this for free, then this is an incredible deal. If you pay for it, it is a good deal.
It should also be the location of like four hundred Mods. Honestly; It's massive and has lots of room for improvement.
i also saw a cool utility for making your own buildings and stuff, has anyone used that? it sucks... theres nothing cool on this game for PS3 
not to bring up old wounds, but I always found that conversation sort of funny in a cosmic way.