Good or Bad? Edit
The award is often seen in a negative light by people who emphasise how it is usually won by people whose submissions are backed by their friends who give it high Reviews, but with a general score which is much lower.
Others see it as a movie which appeals strongly to a certain niche of people and is good enough to get 30 people to bother to review it and give a high score, but one much higher than the general vote. These may not neccesarily be friends etc. but perhaps a category of people the movie was aiming for, such as fans of a subject. Users who don't automatically view the award as bad may complain that it is hijacked by crews etc, setting out to make the review score unrealistically high. Many flash Crew's, such as Clock Crew, consider this award well worth having for publicity and various Flash authors and groups specialise in getting UotW, along with their TotW and RC Picks.
Here is a discussion on the BBS by various people about Underdog, including considering its value.