I've heard many theories on the LoK hatred. (Personal favorite is because they don't like how they saw themselves in Korra more than they ever could in Aang.) The one you point out is a massive complaint for one reason, really: traditional sci-fi standards.
Let me explain. When it comes to fantasy in general, you have one crappy unofficial rule: you either downplay the magic to get the better tech, or you downplay the tech to do more with magic. This can be seen in all medieval fantasy stories as well as most sci-fi space stories that have mystical elements. There are even examples of this in modern fantasies, like Riordan's "monsters are attracted to half-bloods using cell phones" and the Harry Potter's Department on the Misuse of Muggle Artifacts. The most successful rule-breaker to this norm is Star Wars (even with the midichlorians), and there are a lot of smaller ones I know of as well.
That being said, ATLA has it's tech kinda at an American Civil War time period, or roughly about the 1860s. Therefore, the 1920s feel in LoK isn't too far off in the world itself, and I felt it was incredibly well done.