Rocky Grimes appeared in the 1940s, a gangster that spent years on the prison rockpile and killed members of his old gang using rocks as a theme.
I've always wanted to see how they could update some of the more...goofy rogues without doing something even more goofy/stupid like "he kills people with polka dots".
I think one thing writers need to realize is that not every villain is meant to be a major threat on their own. They can be supporting villains to some of the major rogues. Can you imagine if Riddler hired someone like the Eraser? Penguin taking advantage of someone who can actually be considered mentally ill like Magpie? (I know she recently had that cartoon's design stamped on her...but what about the personality/story behind it?) There are plenty of interesting stories that can be told with mixing and matching some of the smaller rogues with the bigger ones.
The Eraser was a funny villain, but he did have a legitimate racket, in that he would erase all the forensic evidence from a crime scene so the cops couldn't make a case. That would be a service he could sell to gangland. He also had a personal grudge against Bruce Wayne, who bested him in college.
The Getaway Genius was another funny villain that nevertheless had a worthwile service--providing getaways.
Johnny Witts was a perfectly good gangster type. He dressed in suits and didn't act like a nut. He was a mastermind that was always a few steps ahead of Batman. He would have made a credible foe if he hadn't been put in limbo.