I think it's been over hyped, but it's a problem for sure. I have one (bought in October) with a flicker problem (not the raster shift or snap-crackle-pop problem) and there's still no official fix... so I just have to live with it until Apple decides to tell their service centers how to fix it.
With the hype around it recently, I'm guessing they've fixed the problems in the last few batches... they have no reason to *want* to ship a defective product, because they have to pay for the parts to fix it, so maybe that's been an incentive for them to fix it faster.
Well my bro bought an eMac last month, and the thing went up in smoke within 24 hours.......
However, I personally believe he was just plain unlucky and it could have happened with any machine, from any manufacturer!!
His eMac has been replaced and this one seems fine, the screen is VERY crisp and bright, with absolutely zero faults...... it's the 700MHz model with 640MB RAM and is very, very zippy in OSX..... all in all he's very happy with it!!
On my school they buyed 60 new eMacs, i remember one of them made this really high noise and on another one the picture was totally messed up. These eMacs are 5 months old now so Apple should have taken care of these problems on newer models.