It's interesting that you say it was "stupidly overpowered." I presume you must be talking about 3E or 4E? IIRC in AD&D it was weak to the point where I don't remember anyone ever bothering to memorize it.
Edit: nope, it looks like the 3E version is basically the same as AD&D, according to this (
http://www.d20srd.org/srd/spells/secureShelter.htm). Doesn't seem overpowered to me.
You're looking for
Tiny Hut, not Secure Shelter.
One of the reasons I preferred RC (besides the just straight up cleaner ruleset) is because it didn't have LTH.
I suppose the power of LTH in 1e may have been around the margins (because the ruleset was so sprawling and incoherent). It depends on whether you ran wilderness journeys in a granular fashion, whether you ran wilderness as an adventuring site unto itself, whether you used the WIlderness Survival Guide.
Very generally, the "game" part of D&D is pretty much about the following:
1) Combat/Evasion
2) Parley
3) Intelligence Gather/Divinations/Scouting
4) Obstacle Obviation/Puzzle Solving
5) Strategic Management of Daily Resources (Including Determining Spell Load-Out)
6) The Ability to Refresh Daily Resources
So how does LTH aid the above?
a) Primarily, it helps 6 (especially in Wilderness Scenarios). A level 8 MU with LTH has 48 turns worth, or 8 hours. There is your modern Extended Rest. For instance, the PCs are in The Sucking Bog. If you're checking for encounters every 4 hours (24 turns) there with prospects of encounter @ 1 in 12, LTH should step that back to 1 in 20. Further, you aren't just decreasing your prospects of a random encounter, you probably should reroll your percentile dice if certain nonsensical (such as Peryton's or Wyverns...hunters that might be drawn to large mammals in the open) results (due to LTH's obscuring capabilities) come up.
b) You aren't wasting the Exploration Turns and the exposure (elements/fatigue/random encounters) when trying to locate resources for/build a Natural Shelter (WSG 61) in the wilderness. The mere effects of failing your Con check and becoming Fatigued (WSG 88) while spending several straight Exploration Turns exerting yourself in the effort to gather materials/build Natural Shelters are significant. LTH obviates all this stuff and transitions right to rest period.
c) LTH helps in 3 and prevents 1 while it does. You can see out, but bad guys can't see in. Its lovely to be able to deploy and camo LTH in a copse of trees overlooking the valley where the hobgoblin outpost you're planning to assault lies. You can gather a large amount of intelligence on your enemies without the risk of random encounters from local fauna. You're pretty close to invisible while you're learning sentry postings, layout, and any infrastructure support.
Beyond that, the spell itself just became more powerful as the editions war on (through 3.x) and spellcaster available slots became much more prolific (thus reducing the opportunity cost of subbing LTH for something else). Reduction in opportunity cost and decision-making in spell loadout increases the power of utility spells.
5e is the most powerful version to date (RAW) and with the least opportunity cost in terms of spell loadout (it being a Ritual).