"Does anyone have any insight as to why vertical centering of dynamic-height content is the way it is?"
Yes. The original standards committee created a layout model (block, inline, and inline-block elements) that (they felt) adequately balanced language complexity with features. It's easy to idiomatically achieve vertical centering. http://jsfiddle.net/aMMxj/10/
"Does anyone have any insight as to why people that code CSS complain about it so much?"
This is a much deeper question, but one that I think is far more informative. Having done front-end engineering for 10 years, across industries, and in very pricey and exclusive consultancies, I have never found another engineer who had read the bulk of the CSS spec, or even a book about it, for that matter.
Developers, the ones with the mind and experience to bring technical discipline to CSS and create a set of idiomatic patterns (both low-level and high-level), treat CSS as a second-rate citizen. The bulk of the rest of the CSS userbase consists of visual design types (coming from print or graphic design), where the tools of the trade are physical pen and paper, or something from Adobe Creative Suite. The remaining portion of the userbase are equally non-technical hobbyists.
This is the real problem of CSS. Those that have the mindset to devise idiomatic conventions to the community don't think the language is worth it. At best, you have semi-experienced developers duct-taping various non-idiomatic ideas together and giving it a fancy name.