Hmmm... It's, needless to say, a matter of personal taste but I certainly don't find the dala horse ugly. And as close to a national symbol as anything... the blue and yellow flag might be stronger in people's mind but as a symbol... well, I don't think a lot of things can beat the horse, which likely did originate in the Dalarna region and has a long and quite interesting story.
I wrote a story ten years ago on the subject, based on an interview with a British born writer living in Sweden, who published a book on the subject.
I'll search for it, run under community blogs.
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