"Is the shit" is a phrase that is grammaticly incorrect. The phrase implies that something, or someone "is the shit", not suggesting the negative meaning of the word "Shit". The word "shit" is infact transformed in to a very strong, positive word, when put in this sentence; it can describe almost everything.
My bike is the shit
Andrews mother is the shit
pancakes is the shit
I am the shit
he is the shit
she is the shit
you are the shit
they are the shit
And if maybe a picture is taken and (ex) a car is pictured, it can be discribed like this; Car is the shit. or any other adjective, subs. verb. etc.
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