Another, according to this Wikipedia entry, was that conditions for getting a government loan forced the company to cut manufacturing costs to the bone, resulting in a cheap looking car. For example, early Henry Js had no trunk opening; one had to open the side door, fold down the rear seat back and then try to maneuver a heavy, cumbersome piece of luggage into place. For not a lot more money, a potential buyer could get a new entry-level Chevrolet, Ford or Plymouth with a trunk lid as standard equipment, more passenger room and other goodies not found on a Henry J.
Henry J styling was what I call cute, and more pleasing than that on many other small cars in the USA and elsewhere at the time. A nice gesture was the small up-kick or micro-tailfin at the rear of the fender line. It served as a counterpoise to the fastback roof line, giving the design some needed balance. Unfortunately, that fastback roof line was going out of style in 1951. Worse, it yielded an inconveniently sized trunk -- the trunk that was difficult to access due to its lack of a lid.
The grille was an oddity -- large, chromed shapes perhaps inspired by squiggly graphics and table tops that were so strangely popular around 1950. Even so, it wasn't really bad. Maybe that's because Kaiser-Frazer had a team of first-rate stylists for a few years, including Buzz Grissinger.