Legalism achieved what all the other philosophies strove for -- unification of China. The Qin Dynasty, operating under the Legalist philosophy, finally unified China in 221 BC. In this light, Legalism was a success. However, the Qin Dynasty dissolved only 14 years after its founding. The Qin emperor was ruthless in his use of Legalism, punishing even small crimes with decapitation or the loss of a hand or foot.
Books and scholars were against Legalism (such as Confucianism) were destroyed. The people were heavily taxed and forced into labor on major government projects. He successfully put the fear and respect of the law and government into the people, but it was too much. After his death, a combination of plotting ministers and peasant rebellions caused the end of Legalism as the ruling philosophy of China.
The harshness of the Legalist Qin would be remembered afterwards, and in response the following dynasty, the Han, distanced itself from Legalism and made its main rival, Confucianism the official philosophy. So although many parts of Legalism seem to make good sense (such as equality under the law, and government according to merit), memories of the abuse of the law under the Qin has kept Legalism in a bad light throughout Chinese history.