Yes, the product is bad.
It is bad due to the fact the wanted to use Twisted Pair into the house, instead of Fiber into the house, ala Verizon FIoS.
So broken down, ATT U-Verse offers you ~25 Mbps (correct me if I'm Wrong) total bandwidth to your house.
Every SD Channel you watch is between 500k and 2 Mbps.
Every HD Channel you watch is 3 Mbps to 6 Mbps (this is where there 4 concurrent HD Channels per home comes into play)
Phone Calls are next to nothing
Then you have internet.
So lets say you are watching HD Sports at 5 Mbps, your Significant Other is watching an HD program at 5 Mbps, and your kid is watching an HD Program at 5 Mbps. You tied up 15 Mb or your 25Mb for your home. So now you want to DL some Porn on the internet, and you signed up for their 18 Mbps package. Your ass isn't going to get more than 10Mbps, because you, your wife, and your kid are watching TV.
ATT did the right thing by going to all IP Services for their product, but they used the wrong Transport Medium to the home. VDSL just isn't the way to go.