Have you shot one lately? Have your experts? They are crap. Failings start with the crappy safety/selecter, the slow mag changes and lack of bolt catch. Then there is the issue of poor accuracy.
Keep in mind that while they are in service with many 3rd and 4th world countries there are no modern armys using them. Hell I would rather carry an SA80A1 and I don't like them much either.
You're right, it's not a great rifle...
But the design is over 60 years old, it was very cheaply manufactured in the millions, needs very little maintenance, and any illiterate conscript can be taught how to use it in 5 minutes.
And that's why it is great. Cheap, reliable and simple. If you're equipping a modern army and have billions to spend, the M4/M16, G36, SCAR or AUG series of rifles will probably be among your first choices. If you're equipping a group of 15 year old Congolese conscripts, you'll go with AK47's. Also, if you want a semi-only version as a defense or bush rifle (and can legally own one), go for it, even if I think it's a crappy rifle, who the F#CK am I to say you shouldn't have one!
As for the whole AR-15 vs. AK47 debate, I think both rifles have their pros and cons, and if I could, I'd own both.
/rant
Oh, and great picture, made my morning (or early afternoon

)