I've seen the expression, but maybe I didn't fully understand its meaning -- at least, this part of it: "часто о том, что... рекламируется как хорошее".
In other words, not simply something of low quality, but something of low quality that is highly overrated.
Like, perhaps, a movie that really isn't very good, but gets a huge amount of praise from critics and is nominated for twelve Oscars simply because it has politically-correct themes? Could that be called "говно на палочке"?
I'm just trying to figure out what would be a good English analogue for it.
P.S. I'm also curious to know if the expression is based on the practice of selling foods such as сосиски, леденцы, мороженное, и т.д. "на палочках"?