As somewhat hinted before, there is absolutely nothing wrong with AMVs in general, and no real reason to hate all of them based on a single segment, no matter how prevalent that segment is. While it's still subjective, gross generalizations do not make an effective argument for anything. That's just being discriminatory.
In the end, AMVs are like any other media. More than likely, you will dislike far more of what's out there than you will like, so it simply becomes an issue of sifting through.
That being said, there is indeed an issue of improved technology making it easier to create and "market" AMVs, thus allowing legions of fans who would otherwise never get to square one to churn out something and distribute it. That's life, and it's not unusual. It happened with fandubs too, and I've seen the same phenomenon with low-budget films - now video store shelves are flooded with abysmal DVR releases that wouldn't rate MST3K treatment, when it used to be relatively easy to find something at least passably entertaining. That's all just one more price of progress.
In the old days, it required a great deal of knowledge, and even specialized equipment, to create an AMV - the concept and practice have existed since the VHS era. People would often spend weeks working on a single project, making sure to get things just right. The product thus became a display of skill and talent, and, of course, became competitive. And for those who dislike the "junk" on sites like youtube, you need only look in the places where these old-school creators have historically prevailed, and the degree of competitiveness found among such technical achievers remains. Conventions are a good example of this. You can also go to sites like animemusicvideos.org, which are more specialized and have several features to make finding a jem that much easier. While a minority even here, you will still almost certainly find a very large number of AMVs worth watching.
As for the flood of AMVs in youtube crowding out what you want to look for, there are several search tricks to filter them out with a significant level of success. I've never had significant problems, even when I was looking for a specific AMV. After all, I don't search for DBZ/Naruto to Linkin Park.
Just off the top of my head (and solely using youtube), I can bring out a decent-sized list of AMVs I like, though in every case, I admit I found it elsewhere and DLed a much higher quality version. Some of these directed me to artists and songs I'd never know otherwise, and a few, like the Angelic Layer and Noir ones, introduced me to a series.
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