I think that “Fail” has now moved from the cute/funny category to the over-used too-trendy category, as everybody and their brother seems to be embracing it’s use for a wide variety of things. It was originally used with videos of people trying something, and failing miserably (and usually painfully). Now, it seems to be used for anything undesirable or not quite right (and is being applied to retail products in that way).
I guess it’s in the same category as “extreme” for me now. I see the word, I look the other way before boredom sets in.