Just rewatched this episode today.
Now that I think about it, it's a genuinely funny episode, and it's probably in my top 3 Season 7 episodes. There are A LOT of really funny jokes, such as Patrick's mailbox exploding, Gary relaxing on the roof, and Patrick saying "You're welcome" to Squidward which causes Squidward to go insane. I don't really mind the Squidward Torture in this episode, especially when compared to all the torture Squidward suffered in other Season 7 episodes. Also the reference to Dig Dug is neat, and this episode also spawned the "Squidward looking out the window" meme.
It's a really notable episode especially considering how mediocre and forgettable most of Season 7 is, and I think it's really overhated and people should give it a second chance.