I absolutely love Taylor Swift for what she is. She isn't Iron Maiden or Led Zeppelin, but she never claimed to be either. I totally get why people bash her for being an archetypal "break-up artist" or for just not being in their fields of interest. I just don't see any reason to differentiate her from others of her kind. In my opinion she writes some really catchy, self-aware songs (listen to the lyrics of "We Are Never Ever Getting Back Together," it sounds totally self-aware to me, even if it is a "Screw you, guy!" song) that are simply fun or self-indulgently sad for her crowd. I think she performs well live and at least plays an instrument, which was brought up earlier. To repeat myself, I think she's enjoyable and harmless for what she is, and if anything is an issue it's the stereotype/genre of mopey "You did it!" love songs.
As for her personal fiascoes, I try to differentiate the art from the artist (not claiming her works to be high art by any means!), but I don't think I would want somebody like her in my life if I knew her.