I don't know what the whole story is with them. I have played an very inexpensive Leolani that is just what you described. My first ukulele however was a Leolani zebrawood/spruce concert. It always stays in tune, has a very nice voice and was a real pleasure to play. I recently added a Kala acacia tenor and while I like playing this new ukulele, I definitely find myself picking up the Leolani almost as often.
I agree with the previous poster though- I don't know if I would have sought out/chosen the Leolani if I had spent any time here and know what I know now. There are some amazing instruments that I have come to know about that I wasn't exposed to before.
Last thought- My Leolani was given to me by my wife after a trip to Hawaii. She specifically had inquired after "real" ukuleles (in a price range) and was lead to the Leolani. I always hope that it wasn't someone just taking advantage of a tourist, but if it started with any cruddy mojo, I feel like I have played the heck out of it, loved it, found inspiration and in general been lifted by its arrival and hope by doing so to have given the instrument new spirit.