AKs ugly? In comparison to what? The FAL may be. The M-14, possibly. If you say the AR I'll slap you. Now granted its no 1906 Lee Enfield, or 1903A1 Springfield but in the arena of currently issued arms its one of the best looking.
Accuracy wise, well, take a Corvette for example, but their are plenty of other cars out there currently that can stomp it flat on the race track, does that mean its not fast? No.
Ultimatly the AK is not ment for bullseye shooting, but I'd take it any day against military type pop ups, or a 3-gun-match, or any other tactical format of shooting. The AK is a combat weapon, in the combat arena it is quite obviously accurate enough as it continues to be a far more popular format of assault rifle than anything else these days. Even the FAL has dwindled in numbers while the AK remains omnipresent. There is something you can say for the Kalashnikov- you may be able to improve upon it but you'd be hard pressed to ever replace it.
If you're a benchrest shooter, the AK will probably never be of much use to you, but if you'd like to stray into practical shooting, well, there is a lot an AKM can do.