Nothing wrong with doing covers. As has been mentioned, when you're in a punk band it's fun to cover songs you don't like just to destroy them. Done some really great destruction to stuff by Brittney and all the "boy bands".
I was in a band that released half a dozen covers over about a ten year period. We always did them our way. We did a really interesting version of THE WHO's "I Can See For Miles" and THE ZOMBIES "Time Of The Season".
As for obsure covers, we did one, (maybe not obscure to the people on this board THE RESIDENT'S "Semolina" ), that most people thought was an original. But I don't think that's such a big deal. since we only did one.
There are lots of songs, that are really cool tunes, with really cool lyrics, that I think were done all wrong by the original band. Always wanted to do "Magic" by Oliva Newton John.