My current character has a spiked chain. I was a little doubtful at first, then I did some mock combat trials on my own and found a few stunning advantages.
My group is playing through RttToEE right now, and the spiked chain, along with other tactics, has kept me up and going when the whole rest of the party was down.
Basically, I use combat reflexes, shield spell or tumble, and the reach advantage of the chain to keep moving and avoid full attack actions and AoO from the opponents. I also have Monkey Grip, so although I loose the 1.5 Str bonus, (and suffer a -2 to hit), I can use the chain in one hand and carry my wand of true strike in my off hand. Add boots of speed, and I'm doing a stupid amount of damage every round and getting AoO if the opponent moves within my threatened area. Not to mention the Trip and Disarm benefits of the chain.
So yeah, if you use it right, a spiked chain is very tough. Also, you can use Weapon Finesse with it, so you don't even need a great Strength to use it effectivly.