I think the good thing about ARURF is that it gives players the opportunity to check out new champions and discover how awesome they are in URF. I mean, be honest, if it was URF, wouldn't you just keep playing the same of your favs over and over? =P All Random is fun for that reason, and you have rerolls. (Also, the wonky team comp allows you to get creative, which was the fun with ARAM).
But I think that we really should have both. Much of the sadness about ARURF is that "URF" is not happening. :|
The worst part about ARURF imo is the fact that currently the lag experiencing takes away the fun- I keep lagging out, three or 5 people in the recent games keep lagging out, and since it only lasts for the weekend, and Riot probably won't fix it fast enough, a lot of the fun is gone because of all the lags and disconnects.
Another thing is that if you notice, ARURF is semi adjusted for the healers (there is a buff of healing down a certain percent or something), and although there are some champions which are more OP, a lot of them, if you really know how to play them, will be super OP and can put an even fight even against a Sona. (But you have to really know how to play them and not be caught in lag disconnect hell because just knowing how to play them average maybe won't be super helpful).
Anyway, I always thought that ARURF and URF not being balanced isn't a problem because it's a featured game mode and it goes by so quick and sometimes unpredictably (the massive lag on all players is a huuuge problem because it doesn't allow people to enjoy the game, & as for unpredictably, I had a really weird really fast game where we were losing hard, then we got to their inhibs, and there was this weird point where pretty much it was our one tower, and their nexus. We lost in the end, but it was fun and very very fast.). The rolls can be a bit unfair it is true, and it would be less frustrating if it is URF, but at the same time it's pretty enjoyable.
I do wish they brought actual URF back though. ARURF is not a suitable replacement, but it is a fun featured mode. You're right, there are a lot of games where you just lose because the opponents roll good characters and you don't or vice versa, and that can be disheartening. I played a game where we rolled all purple characters with a ton of stuns, and the other team kind of just gave up after a little- fun for us, but probably sucked for them. It may not be about balance, but actual URF would level the playing field, because people could try a tough composition team against a tough composition team.
But also, the good thing about all random is that it forces you to be creative. Which is more fun! Sometimes a lot of the games stick to the same exact mindset and it gets a little boring.