It's not that I don't see people having fun with it, but for all it does is turn the game into an item rush (hey everyone stop playing the game so we can chase the erratically moving shiny glowy ball!). And even with items set on low (the only setting i can really handle since the item drop-rate in brawl is crazy), the damn thing shows up at least 3 times a match. And stuff like the Golden Hammer, and Firecracker, etc etc. They're all the same ilk.
Melee had that with some of the rarer pokemon drops, but you had to wait for a pokeball (a single item) and hope it was a super-strong pokemon - in a sense, that's a chance within a chance.
The items in Brawl unbalanced the game too much for me and my friends, so we had to turn a lot of them off. As well as a lot of the stages off too.