That's true, but undead decks have always relied on massive numbers, so chances are good that you'll have cheap common undeads that you can use to build your tokens (while getting the benefit of a new draw). I've always thought the undead keyword effect was fairly lame anyways. It's good with your expensive cards, but those expensive cards are often going to be your finishers.
As much as I try to downplay its power though, I would certainly take Zombie in any undead deck I made. I think that perhaps its greatest power would be in replacing non-undead cards. Once you have enough resources/defense, you really want to be able to get rid of your non-undead +gems, +wall, +tower cards, so you can maximize keyword gain and, even more so, the benefit of cards like Undead host, Banshee, and Corpses Behemoth(sic).
Also, it has a cute picture.