There have been allegations of sexual assault and kidnapping, both of which aren't particularly good news. Uber's early responses were poor (e.g. not doing anything), but the most recent sexual assault has resulted in a suspended driver.
I agree that taxi lobbying has been disturbingly effective over time, resulting in diminished service quality, high prices, and licensing conditions that favor taxi dispatch companies rather than taxi drivers. These artificially restricted markets have effectively created environments ripe for disruptive alternatives.
That said, what Uber is doing with Uber X is typically illegal. For instance, in California, vehicles transporting fewer than 15 passengers one-way on a hire basis are required to file for a TCP P permit. The filing fee is $1000, and renewal is $100 every three years. Additional liability insurance (typically for $750k for Uber-type vehicles) is also required, as is controlled substance testing (drug, alcohol).
So when you got in Uber Black cars back in the early days (when that was the only type of Uber), you hopped into the vehicle of a state-licensed driver with an investment in the profession. These days, when you hop into an Uber X, it's a less consistent experience. Sometimes it's a lost out-of-towner. Sometimes there are groceries in the trunk (not a joke). Sometimes the drivers are dangerously sleepy/incompetent/distracted.
Oddly, one impact I've noticed in Uber X cities is that the Uber Black drivers have toned down the limo aspect. Most Uber Black drivers that I encounter don't wear suits, supply water or mints, help with bags, or make an effort to stop accurately. The overwhelming majority of drivers that I talk with have dropped non-uber commitments (e.g. airport runs for known contacts), so it's probably just part of the evolution of the service.
Back on point, the "entitled Valley logic" point is, at the very least, founded in the evidence of a company knowingly profiting from poor enforcement of local/regional laws and deferral of responsibility to "private contractors" (stretching the envelope of the IRS definition of a contractor).
Code first and ask lawyers later (or never) is more the hallmark of San Francisco than the Valley/South-bay, but it feels like a fair point. I'm a fan of Uber, but I can take a reasoned view of the organization and its actions.