Lack of support for modern wireless networking (no 802.11n, on either 2.4GHz or 5 GHz), inability to perform any sort of processing whatsoever on faster connections (hitting those 80Mbps speeds requires disabling anything that might hit the CPU, so no stateful firewall, no QoS, no wifi encryption, no nothing), limited wired performance (100 megabit switch is a bottleneck for LAN use), limited conntrack ability due to tiny amounts of RAM and CPU power available, lack of USB ports for external connectivity (no hard disks, no 3G/4G data sticks, etc), enormously overpriced when sold new ($50 is enough to get you a simultaneous dual-band 802.11n router today), etc.
For modern internet connections, the thing is nearly useless. I've got a 50/10 VDSL2 line. The WRT54GL that I've got is incapable of routing that at full speed without seriously stripping it down to disable all the useful stuff, and even then its ancient 802.11g wireless radio won't even do half the speed of my connection. On top of that, the lack of a gigabit switch would bottleneck access to my file server (even my gigabit switch is a bottleneck there).
If you've got an old 10 meg internet connection and don't have much of a LAN, it might still be suitable. For people with modern connections, it's useless.