The interlace flicker was a strength and weakness.
Its strength was that it gave perfect timing for video work, made cheap video mixing possible with a genlock, gave unmatched- for the time- smoothness for video animations, and let you plonk the machine in front of a TV at a time when a VGA monitor was not cheap. I think all that was reasonable for the A1200 which was targeted at the home user.
The problem was that the professional AGA machine- the A4000-was crippled, in so many ways in additionto the the interlacing, which was a huge hindrance to the Amiga gaining acceptance as a serious machine. It should have come with a better CPU card and a flicker-fixer.