I don't think it's meant to be ugly. The original designer wanted a "casual" font - and he certainly achieved that - but I'm sure he didn't set out to design an ugly one.
I think its ugliness comes from context - certainly, what grates on me about it is the way it gets used inappropriately. Schools use it extensively, and quite often even in formal documents and writing, where (to me) it just looks out of place. For that matter, I think that Helvetica is a beautiful example of the grotesque font, but it, too, became ubiquitous for a while, and I found that it also began to grate. There is more diversity of typefaces now, so less of a tendency for any single one to dominate to the point that it's overwhelming, and (in my mind at least) that's rehabilitated Helvetica somewhat. Now it's back to being that kind of early-80s New York Subway kind of vibe about it, a bit like the Johnston font in London.
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