It seems most of the gripes with pspupdates concern the fact that the site supposedly makes money. I just listened to the psppodcast guy ***** for like 5 minutes about how this site sucks because of the money issue.
Who cares if it does? I don't. I come here because it's the best place for files and news. I'd rather just go here than check 2 or 3 other news sites to get the same news, or worse yet, check the homepages of individual projects every day.
This site provides two services to homebrew authors: It gives publicity to their releases, and provides a mirror of the files so their hosting bill doesn't go through the roof. That seems to be good enough for most homebrew authors.
Fileplanet and fileshack are businesses too and I don't see many people complaining about them anymore (queuing issues aside).