Cute when spoken with more than one 'U' turns condescendingafter the first 'U' and means the opposite of pleasing and appealing. Often not meant to be sarcastic or critical, but unintentionally damning with faint praise or the disappointed response when 'great' is too much to utter.
Man: "How do you like the new carpet I picked up?"
Woman: "Cuuuuuute." (cute)
Man: "Okay. Okay. I gather that you hated it after the first 'U'."