I have a mixed opinion of the Lomo craze. I'm very glad it's here because it challenges the modern digital* hegemony that decrees that the subject of a photograph MUST be pin-sharp, and provides a small increase in film and processing sales. It may also provide a spur for these 'hipsters' to buy a more serious film camera and discover all that the medium has to offer. The only downside I see is the possible perception that ALL film photography is blurry, has wacky colours, vignetting, light leaks and other technical faults. Some folk just love to make false assumptions based on limited evidence... ;-)
*I'm well aware of Pictorialism, Linked Ring etc. but that's another thread.