」「!」

'I'm not sleeping. I'm just always slacking off.' 'That's worse!'

Literal

''I [topic-は] not-sleeping [assertion-さ]. Always only slacking-off-[state-ている] only'' ''That direction [possessive-の] more quality-bad!''

A self-defeating admission. サボる is the productive denominal verb from the loanword サボタージュ (sabotage) + ~る, meaning 'to slack off, skip class/work' — a classic example of the ~る verb-making pattern. 質悪い (たちわるい) literally 'quality-bad' is an idiom meaning 'worse, more malicious, worse in kind' — not just bad quality but morally/ethically worse. そっちのほう is the casual construction 'that side/direction'.