Well I don't think he's a good director, he is clearly more preoccupied with the spectacle and grandiosity of action set pieces and special effects. This is clear in the PT, where 95% of dialogue and exposition is between characters sitting at tables or couches with a three camera over the shoulder setup. The action scenes are interesting visually but fail because we don't care about the people they're happening to, like he wanted to skip past the "boring" taking scenes to get to the visual effects bits. I don't think he knows what a good story is and how to tell it, he should give that job to writers and directors who know what they're doing. If he wants to keep running ILM, hey, that's cool.
Remember, he also made THX-1138 and American Graffiti. THX-1138 had a limited budget and few effects, and there really weren't any in American Grafitti to speak of. He also did the original Star Wars, which is filmed much better than the PT.