The Three-Click Rule isn't completely bad. People talk about it with users in mind, even executives who have never designed a web site. The rule may help designers focus on the information that users need and may help them create better web sites. These are admirable qualities.
We can't be overly critical of a rule that has the effect of helping designers keep their focus on users and their needs. However, the Three-Click Rule does not focus on the real problem. The number of clicks isn't what is important to users, but whether or not they're successful at finding what they're seeking
Source:
User Interface Engineering
Long, but good discussion about the "three click rule."