Mention Schneier at a gathering of cryptographers, and you'll elicit groans and eye-rolls. The main reason for that is that his book creates an illusion of understanding without instilling tthat it covers literally 1% of what one needs to seriously work in the field. It is also ~30 years old, and was dated even when it appeared.
This is not to diminish the fact that Schneier is an excellent communicator and has done a great service to the security field by being a consistent and effective critic of the domestic security apparatus.
I remember in the intro to one of his later books (Cryptography Engineering, I think), Schneier actually apologized for making a book that was in many ways quite dangerous, and said his newer work was in an effort to make something a bit more focused on providing people with the firm foundations they'd need to do responsible work in cryptography.
That said, Applied Cryptography is a very inspiring book in many ways (which is both the best thing and worst thing about it, because it's not obvious upon reading it just how unprepared the reader is to act on that inspiration). I really wish someone would go write a new Applied Cryptography that dreams and inspires as much, but balanced with perspective and caution, and based on more recent developments.
I stand by my comment, however harsh it may seem. Some of the disdain held by cryptographers, especially of a certain generation, is in no doubt a reaction to Schneier's prominence in the public eye as Mr. Crypto. The fact that he is highly quotable and media-savvy makes him a go-to person whenever a comment is needed on something (anything!) happening in security.
"Real World Cryptography" is also good.