I've come to think of that as "it is going to rain 50% of the time. I don't know if that's what really is meant by "50% chance of rain," but it seems to fit.
And overall I tend to believe that the forecast is astonishingly accurate. This is in the Midwest (Chicago market) where weather has to cross large portions of the country or Canada before it gets to us. I suppose there are areas on the coast where weather is more volatile and harder to predict.