LFD is only bad when it does the following.

Groups people cross-server which completely eliminates accountability.
Teleports people directly to the dungeon.

It's not fun shouting for a group or /lfg for hours. LFD is fine as long as it is server-restricted and doesn't teleport people directly to the dungeon. All it does is make the grouping automated so those of us who don't want to spend hours looking for a group don't have to. You're still more than welcome to group the old fashioned way, nobody is stopping you.