Dad has two. We've never had a major issue. The one was damaged in a flood and required a new stock and rebluing, but other than that there is nothing to report.
Hot Lips magazines have shown some issues with them. The steel lips work quite nice. Same thing as we have found with our 10-22.
My personal favorite reason for using a 96-22 is that you are not always loaded after every shot. I don't trust any safety enough to rely on it, so I tend to have to work the bolt quite a bit on a semi.