If you don't hit it with a pressure washer it holds up pretty well. Using a sponge while washing is ok. I think it looks tacky personally. It is good for a temporary thing to see if you like different colored wheels and then get them powder coated but it does chip and fade over time. Powder coating does not if applied correctly. Powdercoating will fade but it takes YEARS. Plastidip is several months in my experience.
I've dipped wheels, grills, body panels, mirror covers, interior bezels, roofs, etc and I have never had my Plastidip fade, chip, crack, etc. I use pressure washers when washing my wheels myself and the Plastidip is never affected. Have gone through the auto carwash, have used a scrub brush on my Plastidip wheels, nothing happened. Have gone through winters with all the crap they put on the roads in the winter, nothing. Several tens of thousands of miles, highway, city, and dirt roads, my Plastidip still looks great. I still get compliments on them every now and then and have even been paid to do it for other people because I tell them I do it myself.
If chipping or fading has happened to anyones Plastidip, it is from misapplication. I don't mean to sound rude, that's not my intention at all.
About it looking tacky, I do respect your opinion, however I have to disagree. I'm not sure how it looks tacky (if done correctly). It's a flat black paint, basically. Yes, for the first couple weeks after application, it's a little rough looking and feeling, kind of like sandpaper, but as you drive the vehicle the dip smooths out. Yeah, powder coating is immediate satisfaction (excluding the time it takes them to do it), but it also comes at a significantly higher price. You can Plastidip for ~$6-$7 per wheel vs $75-$100+ per wheel. And if you don't like the flat black, you can gloss over it and they'll be shiny. Plus, when you do get tired of it, or you go to sell the vehicle, you can just peel it off. Not so with powder coating.
Don't get me wrong, I like powder coating. Had my bimmer rims powder coated and was completely happy with it. But dipping is just... I dunno, the satisfaction of doing it yourself and it looking so good plays into it.
I seriously suggest anyone looking to dip your rims take the time and really learn how to dip on some practice objects first. Plastidip is very fun, and it's addicting. So many colors too, not just black!!
A tip to whoever wants to use it... I see everywhere people say "Don't apply it in direct sunlight" ... well I only do my dipping in direct sunlight and even better when it's nice and hot outside. I also recommend a minimum of 5 coats. I do 2 light coats, then the rest of my coats are applied thick.
Woah, this turned out to be a longer post than I imagined.