This is a misrepresentation. Rather, homeopathy as I understand it, as a disinterested outside observer, is that one dilutes the remedy only enough to make it safe.
In New Zealand homeopathic medicine is covered under health plans, and a bunch of Kiwi climbers I met when I was down there used homeopathic remedies like arnica. They seemed to think it worked.
Understanding how something works is not a prerequisite for using it in medicine. Otherwise we wouldn't be able to use anaesthetics in regular medicine - after more than a century there is still no scientifically accepted explanation for how exactly they work, just rules of thumb like "if it dissolves in olive oil, it may work".
So rather than attacking homeopathy for not having a mechanism, it makes sense to me to test it and see what conditions it results in a positive outcome for. From what I understand it is successful in treating chronic conditions like allergies that regular medicine has a poor track record with alleviating. In short, a good complementary system of therapy to regular medicine, rather than a replacement - much like acupuncture, chiropractors, naturopathy etc.