I could see why someone would say that Lomo "misrepresents film photography," but I can also see why it doesn't. When I was growing up, I heard about technical advances in film: smaller/smoother grain, more accurate colors, cheaper, easier to use, etc. It was all about making film good at rendering sharp, vibrant images. Now some people want inaccurate colors, lots of grain, and they'll pay a premium for the look/style they want. Also, some people really value not being able to see the picture immediately—they like not being able to "chimp." We all, however, remember being excited about Polaroid film because it was instant! We all remember one-hour photo labs and wanted our pictures quickly. Why do we want to back to the stone ages? Nostalgia is certainly a big part of it, and trendiness is certainly another part of it.
Lomography (I think) cashes in on nostalgia, uses it to keep film alive. That's fine. Some of us may not like the hipster lomo sheik, but we should be happy people are interested in film and want to keep it alive!
I'll probably buy some Purple just for the cause.