It was only crap if you already had an A1200. If you hadn't owned an Amiga before and only wanted to play games then it was the best option IMO, especially considering that gaming was shifting away from the floppy format.
I had an A600 at the time and even I was hankering after one of the new CD32s because it would have been worth the expense just to get away from all that disk swapping which plagued the Miggy. Logic kicked in in the end and I stuck with my A600.
Many people wouldn't have considered buying an Amiga previously if they weren't into computers. Consoles were a different kettle of silicon. Commodore were likely targeting a fresh audience so I see the CD32 as a worthy addition to the Amiga line, even if the differences between it and the A1200 were miniscule.