I'm going to play this just to see what the big deal was.
I watched most of Giant Bomb's endurance run. The game has really quirky characters and the story is very good, especially by the end. There was a site that analyzed the game's story and on the inside it's deep and interesting. The soundtrack has some solid tracks too.
As for the "so bad it's good" parts...well, from what I've seen, the gameplay is really basic and boring (that might change with the DC). Some animations are also wonky and the game has some glitches. Graphics are also medicore.
The hype really comes from the story and characters. If they made the gameplay good and fixed some of the animations and glitches and maybe improved the graphics, it would be a very good game overall.