Like any effect perception of quality is subjective and even then said quality is relative to implementation. There are several ways for engines to handle ambient occlusions in various degrees of complexity and depth. HBAO+ for example tends to look wonderful.
That being said, I firmly disagree with the op. Ambient occlusions attempt to simulate ambient lighting that would otherwise require true global illumination or ray tracing, both of which are significantly more expensive. While the effect is often over done, I find it adds an essential shaded depth to a single scene by giving the illusion of layered shadows on props and objects where in real life there would likely be some.
It is still subjective, but even in that low quality hallway example I prefer the ambient occlusions. There's little natural, realistic, or believable about the shot on the left, instead to me looking flat lit and heavily limited by dated technology. The ambient occlusions are not realistic, but they do add depth and volume to the 3D environment that for me increase the visual appeal.