Kid Chameleon: why the hate?
Is it just because it's not a Japanese game and in the 90s it was cool to disdain US & European productions? (Well as for Europe we mostly deserved it anyway).
bland graphics: not that much for its time, lots of different sprites & scenarios (100 stages game, remember?). Animation is quite good for some main characters (take into acount they are intentionally small).
no save/password feature: biggest flaw, apparently intentional. Just play it with savestates. Try to judge it without this flaw for a moment.
Gameplay: it's not Sonic! It is to Super Mario 3 what Streets of Rage 2 is to Final Fight: it trounces it on every level, except the coolness and catchiness.
Seriously, I think most of the hate comes from people who don't master the game, its specials (the diamonds actually do a lot of things).
The sound is correct, quite unique and bizarre but not bad at all. The music is kinda meh though, but as you have to play it for hours (100 stages, remember?), you'll remember it for days after beating it.
I don't know, it's not in the top 25 tier (or is it?), but I'd be comfortable to see it in any top 50 of the system.
Oh, and the Death Tank!!!