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The Fool's Crest is an interesting mixture of a huge hit point bonus and negative stats to counter it. Its attributes are similar to Diablo II's Harlequin Crest, but the Fool's Crest should not be confused with the Harlequin Crest from Diablo I. This is the only Unique in the game which will vary in 2 categories (both Armor Class and damage taken) making a perfect Fool's Crest (6 AC, +1 dmg) a good collector's item.
No one wears this item for long term use, but it can be a useful item during the mid-game.