the reason fried food is "bad" is the fat. It's true that large quantities of vegetable and many of the other fats used commercially for frying are very bad for you, however frying foods in bacon fat, lard, butter, ghee, tallow and coconut oil (butter should only be used for low temp "frying" like eggs and stir fries, not deep frying, for things like eggs and stir-fries, olive oil is probably ok too. however not for higher temp. if it starts to smoke, it's too hot, and olive oil smokes at a low temp).
There are a lot of people who beleive that fat in any form is really bad for you, however your body needs some fat, and those fats I mentioned are among those which contain great things for your body, all of the animal fats containing fat soluble vitamins which your body can't absorb from a water-based source.
so, is frying bad? It depends on who you ask. If you ask almost any traditional foods person, (like me) they'll say that it depends on what fat you use. I'm sure there are other people who feel that frying is always bad because of the fat content, period. I feel very strongly that you need healthy fats, and there is lots of evidence to prove this, however, I've long since given up trying to convince people of this if they don't agree.