Product placement where it seems natural and isn't trying to be blatant is just fine. If pizza was ordered for a party or event and it happens to be Pizza Hut, who cares? And if you have a scene in a bar, seeing Budweisers may be totally normal to be drunk. (
Beginning of Home Alone, and i think Cutting edge)
Now for anything unnatural in it's presentation, yeah obfuscating it is fine (
Mythbusters testing a beer bottle breaking myth and slapped paper over the beers hiding the brand). I don't want to start seeing crappy '
all the furniture is covered because it's product placement' BS with what they'd call copyright infringement.
Then there's blatent over the top. I remember hearing how Tony Hawk's Skater pro game on PS2 had ad placements EVERYWHERE, like 10x the normal. That kind of thing will make me not only not buy the game, but not look at any of those products in said game either.
Few years ago a Game Jam with Angry Joe was going on, apparently they were trying to make sure everyone had a Mt Dew at all times, and rules and stuff for the name facing certain directions to the camera, so much it was apparently totally annoying. On top of that they had a director who was specialized in reality TV BS trying to start drama and fights between teams of programmers, who were having none of it and they just cancelled the whole event.
Product placement can even be part of the narrative in some cases. Example if you're doing a homeless encampment, they wouldn't be using name brands like Campbell; And instead has Dollar Tree '
Saver's Choice' or whatnot brand, though it shouldn't be the main focus.
Everything is made by someone.
Bodger sells out