I really can't include much of anything from the 1995-1998 era on my list, and it's because no matter how dated those figures are, and how horribly roided out some of those sculpts can be, they made me very happy at the time. Even now when I look at them, I don't have any "hatred" for those toys, as they were a chance to finally get new SW toys again, after years of going without due to that dreaded enemy of childhood collecting: the unannounced yard sale.
That said, I had a hard time narrowing my list down to 10 from the post 1998 era...
1. Moff Jerjerrod (Saga, 2006): Granted, this isn't because the figure is particularly bad, but more due to a history I have with it that has not ended to this very day. The Wal-Mart closest to where I live has had a very slowly dwindling stock of Moff Jerjerrods for the last 4.5 years which have NEVER been marked down, have NEVER moved, and will NEVER sell. There are at least 8 Jerjerrods, covered in dust, with cards that have been scuffed, kicked, beaten, and stepped on, still hanging on the pegs in the SW section, STILL at 6.88, and still unwanted. It definitely proves the adage that familiarity breeds contempt, because I have seen that figure so much in this single WM that it has filled me with a totally irrational hatred for a figure which, compared to others on my list, really doesn't suck that badly.
2. Mace Windu (Saga, 2003): This was the first figure I didn't buy at retail, which again, holds a distinction as, up until that point, I had gotten one of EVERY single carded figure to open. One of my friends gave me one as a gag gift because of my disdain for it, and only when I opened it did I realize just how truly horrible it was. Let's stick a huge joystick in the back of a figure, make his arms out of gummi worms, and give him an awful "rectal probe" facial expression. As offensive as some of Hasbro's action features during the 2002-2005 era got, this was probably the pinnacle (or, more accurately, nadir) of that marketing gimmick.
3. Anakin Skywalker (from Swoop Bike, Saga, 2003): I have exactly the same problems with this figure as Jesse so eloquently explained in his post, but the fact that I still have to display his sorry ass on that bike on my shelf due to the lack of an AOTC-era Anakin with ball-jointed hips to replace him with disturbs me even more than any of his flaws. Of which, there are MANY.
4. Explodo-Grievous (ROTS, 2005): I have no idea how this figure even made it out of Hasbro's design team, as most of the ROTS stuff (even the action feature laden toys) was top notch in most respects. It looked, felt, and behaved as if it were a knock-off Happy Meal toy. Its inability to hold together made me momentarily long for the days of the Saga 2002 magnets. The fact that, once the film came out and we saw just how big Grievous actually was, he was horribly underscaled to a degree that hadn't been seen since the POTF2 Chewbacca and Leia, just made things worse.
5. Luminara Unduli (Saga, 2002): As much as Eeth Koth seems to be getting knocked in this thread for his status as a harbinger of action pose doom, I think Luminara beats him in every respect. Lack of articulation? CHECK. Ridiculous pose? DOUBLE CHECK. Saggy lightsaber? TRIPLE CHECK. When the ROTS version hit in 2005, I tossed this one in the "sell" pile and never looked back.
6. Rabe (Post-OTC, 2005): This is probably the one figure that I only keep because Hasbro will probably never do another one ever again. This came out at a time when Hasbro had shown they clearly knew better, and only one wave prior to the start of incredibly detailed Cantina Aliens (Myo, Feltipern, and Jerriko). I know that this figure was part of a wave delayed due to the OT DVD release and the Original Trilogy Collection hustle, but even if compared to the Saga 2004 series it was delayed from, it is subpar in sculpting, detail, and design.
7. C-3P0 (Vintage OTC, 2004): The VOTC figures were pretty much as good as it could get back in 2004, so even when Threepio first hit, it was clear he stunk. He sported less articulation and detail than many mainline, non-premium figures at that point, and at a higher price tag. He was the stinker of the VOTC assortment, and he remains one of the worst figures to this very day, as far as I'm concerned.
8. Clone Trooper (Deluxe with Speeder Bike, Saga 2002 and Clone Wars 2003): Even though 2003's Anakin (from the Swoop Bike) outdoes this one in terms of ridiculous pre-posed sculpt, the Clone carries it to a new level with awkward removable armor, a completely non-functional action feature that resembles the Masturbating Bear from Conan O'Brien's show, and a near-total inability to even interact with the vehicle he comes with. As soon as the 2003 SA CW Clone Trooper hit, he got to ride the bike in my display and this bowlegged aberrant Clone went into the bottom of the "dregs" box.
9. Luke Skywalker (Death Star Duel; Saga, 2003): For all the reasons that everyone else has already gone into at length, this figure offended me on multiple levels. Not the least of which was that I "had to" buy it twice because the first one I got had the "swapped hand" issue. Of course, that's more my problem than the figure's, but hey, it does suck pretty bad.
10. The Emperor (Saga, 2003): I really don't know what Hasbro was trying to accomplish with old Palpy here. That huge hood was silly enough, but the awkward pose that looked like he was trying to do the Wal-Mart "Squiggley Dance" and what I can only describe as "impotent" Force Lightning accessories made this one of the worst non-action feature related figures from the Saga years (2002-2004). The fact that Hasbro reissued him a year after they'd done the superior-in-all-ways Evolutions sculpt in 2006 was yet another strange decision that I can't figure out.
I'd also like to say that saying the figures from 2002-2003's Saga line, for the most part, were horrible is like shooting fish in a barrel; it's far easier to go through and pick out which figures from that era were actually GOOD. I find the majority of those figures far more offensive than ANYTHING that came out of the POTF2 era.