I was WONDERING if someone would take the bait...
Actually, I think the plot had some potential to it. Daventry's been turned to stone when an artifact is removed and destroyed, and it's up to Conner to get the pieces of the artifact back and save the day. Looking back at the days of Kings Quest I and II, a whole lot could be done revolving around that premise. The King's Quest II Remake proves that: what started as a simple "You are lonely and want a girl, and that's all the story you need" game had the story reworked to near epic proportions. If it can be done with that, then number 8 is ripe for the remaking. The bugs, combat, and other technical details can be thrown out with the remake anyway; after all, you'd be making the game into an adventure game proper, and creating your own artwork and such, so not a lot would be left over.
But as to your original point; perhaps your closer to it then I am, but I think we're both right in a way: the big problem is that they took King's Quest and changed it into something they shouldn't have. I think that - bugs aside - a lot of fans might have accepted the graphics and plotline if it was an adventure game with more interesting puzzles. But the combat caused way too many problems, what with the bugs, the sluggishness of control, and the vague feeling of stupidity to it.