Inferior to basically any other method of brewing coffee. Even among pod systems, for instance, it's markedly inferior in quality and environmental impact to, say, Nespresso, which uses all-aluminum pods which are fully recyclable (Nespresso even composts the coffee inside the pods).
Nothing's wrong with the biodegradable pods, although those aren't going to be ideal for quality either, and those are a tiny slice of the market.
The simple fact is that this is an awful product that is doing vast amounts of environmental damage. Read up a bit yourself and you will see what I mean.
http://en.wikipedia.org/wiki/Environmental_impact_of_K-Cups