Some of it is indeed stuck in the 90s style-wise and yes, some of it is badly put together clipart, but there are designers catering to this market who will do something that's acceptable for a startup. We used a similar site for our logo, because a real designer was expensive. You can also get too hung up on your logo and brand, and have no app because you're worrying about a logo...
True indeed. I've never even considered this option to do the design for my startup. And if I don't have enough money to pay the designer I'd better do the design myself rather waste my money in such a way.