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As a craze, I don't like any craze in medicine or dentistry. But as a sober, conservative means to improve a persons appearance, its fine. Like anything in medicine and dentistry there are patients and doctors who will overuse/abuse it. But there is no research that shows that it is detrimental to teeth, gums, or the rest of the body if it is used as instructed, preferably under a doctor's supervision and prescription. And it is a relatively conservative treatment compared to the cosmetic alternatives.

The reaction of the Brits is a wacky, junk-science over reaction because it takes a low cost, non-invasive alternative for cosmetic improvement away from dentists and their patients.

The alternatives to bleaching are expensive, invasive(surgery and/or drilling teeth so certainly not as safe), and will have to be redone through the years, thus compounding these.
I've done some simple, short term bleaching on relatives without a second thought about safety.

On some dental message boards, I've also read some British dentists speculate of an ulterior motive: too many people were going to the dentist paying out of pocket for the bleaching which is not covered by the NHS, then using the NHS for regular covered dental treatment and placing a further strain on the system.?