Wow I absolutely agree with everything you say. I often see people talking about Bleach like some kind of musically and lyrically retarded stepson of Nevermind etc.. and to me that is missing the whole point of Bleach. Bleach was meant to be a grunge album.. Grunge wasn't about classic rock or stadium filling songs like Teen Spirit and Lithium and whatnot. Grunge was dirty, simple, 3 chord, angry! songs from pissed off young people who grew up listening to punk and metal and wanted to fuse the two together.
With that in mind, I personally consider this the best "grunge" album to ever come out of Seattle. Lyrically it really does have it's moments and although it's no Bob Dylan record, it doesn't have bad lyrics either. I actually like all of them. The highlight though is the fantastic heavy guitar riffs, and the incredible rock voice Cobain had, and then all those screams which sadly were missing on all future albums (with only a couple of exceptions). I could ramble forever about this album but basically I just really love it and I think there is something really special about it. I bought this in about 1993 when I was about 13 years old. It's now 15 years later, and I love it as much as the day I got it. That really says something.