I don't really see the hatred this episode gets. I just assume that after Pie-Guy considered it bad, everyone agreed with him.
I think the episode is alright. It has a handful of good jokes, a decent plot (By the way, who really cares if the plot is bad? It's a comedy show.), and some pretty good animation for the five dollars they had (remember, they started off the show with no budget). If they explained what SpongeBob was trying to do to Squidward near the end, then it would be pretty good, but as it stands, if this is the worst of the first season, than I don't think there are any bad episodes from it.