I think TN panels can get a bad rep for the same reasons that CRTs do: people are just used to the cheap and nasty variants. A decent CRT gives an excellent picture, but a knackered old CRT, or just a cheap and nasty one, will give an awful picture, far worse than even the world TFT, that will at least not blur or distort (assuming the signal remains intact all the way to the panel, which is not always the case). Not helping either is that most CRTs can be drastically improved just by twiddling with the many different settings for half an hour, and setting a more suitable refresh rate.
Likewise panel type is not the most important attribute of a TFT, my IPS at home is worse for dark games and films than my TN at work due to the very poor black depth that comes with cheaper public displays, than the standard computer orientated monitor I'm sat infront of now. Of course, move to the design environment of display adverts in a bright or outdoor environment, and it's a whole different story which will give the better, more vibrant image, from any angle people might be looking from.
I'd imagine a modern TN panel is leaps and bounds ahead of early examples, and reaches the "good enough" level for most people. Other panels can look better, but many people won't pay a premium for extra quality beyond what they consider enough.
While I'll never buy a TN panel for myself at home, that's mostly because I'm an electronics snob and only buy the best I can afford, or I don't bother at all.