Nope, it sure isn't evil! Evil is a whole other philosophical kettle of fish, and I'm pretty sure phenolic isn't on the official list of evil things.
Phenolic is compressed linen, methinks.
It comes under the topic of aesthetics - some people don't like it, others do. I like a broad variety of bows, some with phenolic, others without.
The "No phenolic" (similar to the "No CNC") advertising, is just another not-so-subtle crack at Black Widow, as they are renowned for their use of phenolic in their bows these days (although you can request their larger recurves without it). One thing is for sure: Whilst Black Widow bows will forever be knocked by some, I don't think anybody is game to knock the achievements made by folks around the world with Black Widow bows in their hands.