Yes...it sucks so much, that Facebook used it to scale a network worth $50 billion dollars today.
From a coding perspective, it is a very "loose" language (not that kind of loose). This has advantages and disadvantages, depending on what you are doing.
It is very easy to learn, and therefore there is a large degree of stratification with PHP devs. Professional coders turn their nose up at PHP, because it is kind of like telling Tiger Woods that you play golf. Maybe you do...but you don't play his game of golf. It's more impressive to say you code in a language that is difficult to do well, and that will punish you badly if you don't code in it well. PHP is pretty forgiving, even for pretty crappy code (I've seen some pretty awful stuff).
The truth is that PHP is a great web language. Rails and other frameworks provide tighter integration with the db and view layers, but this isn't necessarily a good thing. PHP allows for that level of integration if you want it (as mentioned, there are many PHP based frameworks). It also happens to have a large, open source code base that is reviewed by many, many eyes, so bugs get fixed quickly and the language evolves quickly. The help manual is superb, and it performs well across hardware platforms.
You will hear many baseball fans saying the other team's players suck. Most of the time it isn't true.... it's just a pride thing.