From a competitive standpoint, yes, the Gen II starters are bad. The most competitively viable of them is Feraligatr, which resides in the Underused tier. Every other generation besides Gen IV features Pokemon that are at least tiered as OU, if not higher (i.e. Blaziken and Greninja are both relegated to Ubers). Furthermore, Gen IV sports two UU Pokemon (Empoleon and Infernape, the latter of which is viable in OU), while Gen II only has one such Pokemon. However, from an aesthetic standpoint, the Johto starters are far from bad; they are actually my favorites! Cyndaquil is my favorite first-stage Pokemon of all time, and Bayleef is my favorite Grass-type Pokemon. Thus, I don't think that the Gen II starters can be labeled as objectively "bad;" one's assessment of them depends largely on the lens through which one is looking at them (i.e. competitive viability, aesthetic appeal, etc.).