In my circles (Computational Linguistics), getting your paper approved means that you convinced at least three PhD students with a published paper (or higher, all the way up to Professor) that your paper is good PLUS the area chair(s) considered it worth publishing. All of this without knowing who you are nor what your institution is. And once your paper is accepted it is freely available on the internet forever.
No human activity is free of issues, but to me double-blind peer review is a fairly effective system. And every year the system is tweaked to try and adapt it to newer developments such as the rise of ArXiv. Most criticism I read uses the term "peer review" to refer to whatever Nature, Science, and/or Elsevier are doing at the moment, but just because they suck it doesn't mean that peer-review as a whole does.