Filmschoolrejects did an article recently about this. In short, sure, it's going to get laughed out of any sort of Picture, Director, or Acting awards, but they really don't care, because it's still going to clean house with the technical stuff (nominations if not outright wins). The Academy tends to treat the word Best like it means Most, so a movie that's just a general all-out assault to the eyes and ears is going to go far in those respective categories. And at the end of the day, an Oscar is an Oscar is an Oscar, no matter the category.