Nah, I think Jackson did a good job. I'm sure there were other 'already famous' directors that would have made it worse and not followed the storyline. I just think stretching it out like they did was self-destructive. I tell ya, if they had released all three in the space of 12 months, and then released the entire DVD boxset, it would have been phenomenal. The momentum would have carried the excitement.
Now that the dust has settled, I'd probably agree that the first film was better than the rest -- especially the last half, once they form the fellowshp at Rivendell. I even think it has the two best battle sequences in the entire trilogy: the Mines of Moria (from the mountain troll through to the Balrog), and the final attack on the river bank where Boromir dies.
I'll say this: RotK worked much, much better at the movies than it did on a TV screen.