Yes they are misunderstood by those musicians who never investigated them. To them it still got the Walmat/Casio $149 stigma. But strumming 4 chords on an acoustic guitar is OK.
As far a s audience I've never heard a bad comment about my arranger.. I always get positive feedback on my performances and I think its because I don't let the arranger take center stage. Editing the Styles and SMFs, playing some very live sounding keys over them and vocals make it acceptable.
I've seen the worst talent around and people don't care how the music comes out as long as its good. Live Kareoke in various forms is common anymore so who's to say we're cheating or not really playing using an Arranger.