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Oh, "flawed" is too strong a word. It works, it's a good value for the money, it's not a scam. But, it's not a miracle. People see "stepped attenuator for $6!" and have all these visions in their head of saving $100-200 vs. what we normally think of as stepped attenuators.
Here's what's wrong with it relative to more expensive parts:
1. It pops between steps. There are ways to cure this, but it's a pain.
2. The bushing is a strange size, so you have to have an odd drill size to make the hole. (23/64", as I recall.) The mounting nut is a strange size, too, so you probably don't have the right nut driver for it. You end up using a Crescent wrench. Bleah.
3. The shaft is long and splined, and below the splines it tapers to 5mm and then back up to 6mm. So either you have to find a very large knob for 18-point splined shafts for it, or your have to cut the splines off and deal with the 5-6mm shaft. Splined knobs are rarer than knobs for smooth-shafts, and you probably don't want a knob big enough to completely hide the shaft anyway. There are knobs for 6mm smooth shafts, but in my experience the short 6mm section isn't long enough to work with most knobs. There are no knobs for 5mm shafts that I can find. If you don't match the knob's hole to the shaft size exactly, the knob wobbles when you turn it.
4. It's a small annoyance, but you have to cut the loudness pins off for boards like the META42.
5. If you examine it side by side with a real ALPS Blue Velvet pot, the ALPS pot is built a bit better. I'm not sure if this really matters, but it's nicer to use a well-built part than one that's cheap-looking.
EDIT: 6. I have to admit, I'm inclined to negative feelings when I think about this part, because it's so clearly a cheap knockoff of a great part. It's not just the physical parts design, it's the fact that they stick these cheap Xeroxed pieces of paper on the back that are made to look like the professionally-printed stickers ALPS uses on their parts. They're clearly intended to deceive, and that bothers me.