Neither are cities. Ouarzazate is a medium-sized modern town built around a military camp, Skoura is a stretched out oasis along a couple of seasonal rivers, with a small village on the nearby main road.
Personally I'd stop either in one of the 40 or so accommodation options around Ait Benhaddou, or at Kasbah Itran at El Kelaa M'Gouna,
"For sheer delight there is nothing like altitude; it gives one the thrill of adventure
and enlarges the world in which you live," Irving Mather (1892-1966)
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