There are two sides to this. Yes, some mortgage companies push loan products that aren't meant for Joe Six Pack, but at the same time Joe needs to do his homework.
Personally, I do few Option ARMs. If the customer knows what they are and how to use them, I'll do it. I don't just habitually sell them to every average Joe. The key is-if the negatively amortizing minimum monthly payment is the ONLY WAY you can afford the payment, then YOU CAN'T AFFORD THE HOUSE. If you use it as a financial tool but are perfectly able to make the much-larger fully amortized payment once the time comes that the lender requires you to, then it can be a good loan.
The only option ARMs I ever did were for very high income people buying very expensive (several million dollars) properties as a primary residence, or were continually purchasing investment properties that were none to cheap either. And those, while not true "flips" were short term holdings.
These neg-amortization/pay-option ARM loans can also offer the most points to a greedy loan officer.