An anecdote does not data make. In general, 'Soviet' or 'communist' design is ugly, why do we need to sugar-coat it? Not just consumer electronics, but cars, architecture, ... For example 1990's East Berlin - come on, that place looked well ghetto (and it was, but it looked the part, too).

Besides, it's not like the lomo is a beauty to look at, either. It gets its cult status from being niche and having a low barrier to entry, not from its good looks.