I think most people prefer later incarnations (except Grant Morrison maybe). I prefer him to be more evil than misunderstood, but it was still a good idea to give him more complexity, because after all, he does have a legitimate point about the problems mutants face - he shouldn't be so crazy and obviously evil that no one in their right mind would agree with him.
But early Magneto is just so damn fun because he's so one-dimensional, even by comic book villain standards. Jack Kirby sometimes gave his villains stature and dignity, but Magneto's just a bug-eyed crazy old man. It's silly but funny that the villain with the most legitimate grievance is somehow portrayed as the most unhinged. Plus it led to bits like this (from Kirby's Captain America):