I think it looks pretty terrible either way, but I still like having it. I just wish I could move it. My plans changed for my town and it no longer works in the spot I put it, but I guess I'm stuck with it now.
I prefer the under construction thing to the bright orange tent, blech. I suppose if you made the stuff around it match, though, it wouldn't be bad. :/
Plus, I can't imagine not having a campsite. It seems like it would be too annoying to get villagers you want otherwise, especially if you wanted popular ones.
I don't mind mine, I put flowers and paths and trees around it so make it nicer, but I do agree it should be prettier.
If you hate the look that much, I suggest you put it in the corner of your town or the side or somewhere.
To be honest, I think I actually prefer how it looks when there's nobody camping. I think I might like the tent more if it were a different colour (I usually love orange, but it doesn't look too flash in my town!).
The igloo is the exception though. It's especially gorgeous when it lights up at night!!