I never had a problem grasping it, but teaching it to some people (sometimes even rather intelligent people) could be like pulling teeth. It was a bit counter-intuitive.
I think it would have worked better if AC 0 were the default (in other words, 0 replaced 10). Then AC could have ascended for better AC, or descended for worse AC (which I find people tend to find more intuitive).
For example, assume Joe the Fighter has a Thac0 of 8. He always knows that he needs to roll an 8 or higher to hit AC 0.
He catches an orc with it's pants down, and therefore needs to hit an AC of -2. Subtracting 2 from 8 we find that Joe needs to roll 6 or higher to hit the orc.
Then the heavily armored BBEG walks in with a hefty AC of +7. Adding seven to Joe's Thac0 of 8, it's apparent that Joe needs a 15 or higher to hit this guy.
I expect that would have been much easier to both teach and learn, for most everyone, and it's still (IMO) at least as elegant.