I do find it amusing, since I really don't think Daikatana is that bad. It's not great, but at least with the PC version I think there's some fun to be had. It was just way over-budget and overhyped with an extremely questionable marketing campaign. Also, the GBC version is a legitimately pretty decent game.
Deus Ex is of course much better, but to be fair most games fall short of Deus Ex.
I think the "John Romero is about to make you his bitch" campaign in particular was an incredibly bad call, especially in the "gay panic" era, and made people want to see it fail.
Not that it needed any help, but I think that contributed to the glee around the spectacular crash-and-burn.