Jaws was saved in the production firstly with all of the script re-writes. Then whether consciously or not, Spielberg played to his strengths which is why if you think about it, the film is like a combination of the best elements from Sugarland Express and Duel. Then the editing could only improve and tighten everything up. Though I still think the added head bit was unnecessary.
I could never agree that Spielberg's modern output is better. To me they're just so damn...boring. If you enjoy or prefer them that's fine, but I could hardly stand some of them and became beyond exasperated with things like The Terminal. I think my primary problem with these films is that I never saw much of a point to making any of them. They seemed to exist only on a single story level and little more, so that virtually anybody could have made them. His boundless creativity for storytelling hasn't been present for me in a looong time.
I guess I stick with EOTS as the breaking point because Last Crusade is undone by its tiredness. (Though I loathed The Color Purple and E.T.) I've realized that I only like five of his anyway. (Duel, Sugarland, Jaws, Raiders, Temple)