I don't think it's bad when you're actually holding it, just the act of actually picking it up generally puts you at risk pretty often
Oh, I sort of was thinking about Snake holding items in general. Snake can get the chance to hold peanuts, bananas, grenades, tires, gyro, bombs, suit pieces, and turnips (occasionally bom-omb, beam sword, or Mr. Saturn).
In some match-ups, Snake will just throw nades over the characters head every time. Some moves like landing aerials put characters so low that Snake will throw them over the character anyway. His glide toss is bad and nades are not the greatest out of shield option he has. Holding a nade significantly weakens Snake as he doesn't even have any aerial options like the Link's have holding a bomb.
-Link/TL have the options of holding items and using aerials effectively or specials.
-Diddy has options to his peanut launcher or side B which can catch people shielding.
-Peach can use aerials without difficulty by abusing her float.
-ZSS has extra reach with her sideB and a decent glide toss.
-Rob has the same thing with a good glide toss and a laser to use.
-Wario gets decent aerial mobility to safely maneuver himself around the stage (with usage of airdodge) and can even get through shields with his bite.
Snake has no good options period while holding any item. The best one he has is throwing stuff, and that's not even that scary once you realize you can just shield it.
tl;dr All I am saying is that Snake is stronger without trying to hold onto items.