Nothing really wrong with them. They just require regular routine maintance and are not very efficent in the nitrogen cycle.
They do not help with nitrates eitheir. If clogged or not cleaned reguarly, you stand the chance of losing everything in the tank. Live sand is widely being accepted as a better means. It not only looks more natrul but, if done correctly, can help reduce nitrates. It also provides a better place to house critters that are benefical to your tank.
If your looking for filtration, Live rock is quite possibly the best way to go. It not only looks good, it serves very well is filtration. It provides multiple places for bacteria to grow, and also provides a place for the fish to pick at food.
A wet/dry filter is a much better way to have an artifical filter to your tank rather than a UGF. Due to the fact it usually requires plumbing and a stronger pump is what steers some away from it. Not to mention the cost, but it is cheaper than Live rock, depending on the tank size.
In conclusion, If you like maintance and keep up with it, A UGF will work. However you must keep your Bio-Load low and constantly maintani the pumps. You must watch your nitrates to keep them in check due to the fact they will only be removed by water changes and not through the filtration.