I think it's good that people care about where their food comes from and how it's made. Most of us are absolutely clueless. Which gives the producers every incentive to cut corners and make the most lame, scary, and abominable crap on the planet (see: China and melamine).
The problem is when people act as if 'organic' is a flavor. If quality isn't built in as the primary component, it doesn't matter how many feel-good labels you've got. The thing is crap and falls apart in the marketplace.