Well I guess I don't share your sentiment on this matter. I have been using InstallShield since version 2.0. While the version that comes with VFP7.0 probably does suck, I presume the idea was that most people would buy are real copy of the software.
If you find the current versions of the software too complicated to use, try using version 2.12. This version did not incorporate the annoying Product Codes and Upgrade Codes. It's interface was quite a bit more simple as well. I have used 2.12 for about 4 years now and have not converted over to 3.54 which is on my computer (bought version as well).
If I had to guess, from your experience, you were probably using a version of 3.5 and you probably set it up wrong.