I didn't fully understand it as a teenager, but thought it was funny. But as an adult when I found out more about it, it was even funnier!
That's just it -- I didn't think it was funny, just awkward and strange.
I'm not sure it was ever 100% successful but it was bold to try compared to the more strained/crass attempts to make Looney Tunes "relevant" afterwards (Space Jam, Back in Action, etc...)
I liked Back in Action. It wasn't their greatest achievement, but Bugs, Daffy, etc. were certainly more in character than they were in Space Jam, and it was a fun movie in general. Plus I've always liked Joe Dante's movies, so that helped. (I loved it when Brendan Fraser's car turned out to be a Ford Gremlin and Jerry Goldsmith's score dropped in a reprise of his Gremlins theme. That's a classic Carl Stalling-style musical in-joke and a Joe Dante in-joke at the same time.)