I think she's an acquired taste.
I don't like most of the Lilly stuff, but that's simply because I'm not a fan of colors that bright or large prints, and she uses both in abundance.
I think it might have something to do with where you grew up, too. Here in the Midwest I don't know anybody that's even heard of her, let alone wears the clothes, but most of the East Coasters I know consider Lilly a fashion staple.
Just chalk it up to the fact that most guys will never understand fashion.