I have no idea why Nintendo thinks the items in Mario Kart make it fun and Mario Kart has been topped numerous times over the years, whether it's Crash Team Racing or Sonic All Star Racing Transformed.
Items in MK
are fun for the majority of people, and they're one of the factors for why MK is still alive and kicking while F-Zero, Wipeout, CTR, and Sonic Racing are all dead.
Maybe Mario Kart 8 will prove me wrong, but the more I played Mario Kart 7 the less of it I liked. It was also the first Mario Kart I owned since the original.
Off the top of my head, MK8 has an item that can kill the Blue Shell (and you can get it while in first place), and you can't drag an item while holding another (which cuts down on the amount of queued red shells a racer can let fly.) I'm meh on the latter but both of them make for a slightly less hectic experience if you're a noob.
The item balance also seems a lot better to me in MK8, but I skipped 7 and so was coming from MK Wii where it might have been the worst of the series (it's also where that vid you're so eager to post is from.) The only really annoying item is the Lightning Bolt, which bewilderingly took a step back from MK Wii and can zap all other racers, not just the ones in front of you. Boneheaded item that needs to go or a severe retooling.
I don't know whether it'll be your cup of tea but it's certainly not dogshit for failing to appeal to your narrow sensibilities.
