I never like bitcoin ATMs because of the rates. they're good for publicity though!
Of course they were installed to bring profits to their owners so definitely expect some abnormal rates which would have been low if you bought from an exchange directly online or in person than using that machine.
how much the fee for using the ATM? if the fee is to expensive than any other wallet, then i think only few people will used the machine and they will prefer to used the other service. beside that, actually ATM machine is helping people to easily deposit and withdraw their bitcoin into fiat and this is a good news for people.