Yes, it is (!) perfectly fine for what it is meant to be and this is no matter of opinion but probably a concept you did not understand yet.
3D Gamestudio is a game development suite, not an engine alone, primarily aimed at beginners or hobbyists which gives you all the necessary tools (except a painting program) to create your own (first) games. You don't have to spend weeks to learn something as complex as Blender or get another free or paid tool from some other place but instead you can get the hang of MED in half a day. Many people probably don't even want to learn or get into such advanced tools, and no one forces the advanced or interested users to design and animate in MED.
Thus it is just plain stupid when forum users ask for the abandonment of MED, and I've always hated it when they did, it's such a narrow-minded and selfish attitude...