I've used one item (in both 2e and
3e) and had one used against me. Both fall into the "cool powers with a annoying effect".
In my games, I've used a modified version of the Ring of Bureucratic Wizardry. It functioned as a normal version of the Ring of Wizardry doubling the (base) spells prepare/memorizable per day (I gave the 1st-3rd version), but caused any spells cast to be delayed 1-4 rounds while all of the "necessary paperwork" was filled out. I changed it so that the ring was removable, and the curse only applied on days that it's extra preparing effect was used.
In one of my friends games, I aquired a "Staff of Fiery Death" which had the curse of causing my touch to harm those I cared for. We quickly learned that giving a 10th level fighter/mage (2e) such a staff is a bad idea... especially when near any enemy army encampment.
So I am definitely in favor of using cursed items, as long as the curse is more along the lines of a quirk that causes second thoughts about using the item, than the "haha, you're hosed" curse.
And yet another word from our sponsors
