I don't think Seth did bad. His real sense of humor/style just isn't made for primetime ABC with all of America watching. A lot of websites were complaining that he wasn't edgy enough. But then when somebody does something edgy, the world's in an uproar about how it was inappropriate and offensive and every PC group in the country is picketing the Oscars next year saying he should never be brought back. Everybody who knows who he is knows he could have lit every celeb in that room on fire and put on a hilarious show, but the backlash from that would be even worse than the backlash from people saying he was lame/boring.
I mean honestly, when was the last time anybody thought the host of ANYTHING was good? After every award show, you check the reviews (or ISH) and people are saying how horrible they were. Billy Crystal's too old and boring. Russell Brand is too offensive. Anne Hathaway was too boring. Ricky Gervais was too in-your-face.
Seth did what he was allowed to do, and people are either gonna be bored or offended. America's too diverse for there to EVER be any even ground in between the two.
Even if RDJ hosted, I think the producers would just limit him a lot. All the cheesy jokes they make them do just kill even the funniest guys' sense of humor. The funniest parts with the Avengers guys were when Downey and Jackson adlibbed and went against what the teleprompter said.
Basically, if anyone under 40 finds a person funny...everyone over 50 is gonna hate them and be offended by their humor, go online and complain and demand that they never come back. Especially the Oscar-viewing crowd. If you put someone like Seth on the MTV awards and let him go off on the Jersey Shore cast, the Twilight cast, all these rappers/boybands...it'd be gold. But last night even with Kristen Stewart on crutches, limping with messed up hair and a bruise on her arm, Seth comments on how lovely she looks. The producers just kill any legitimately funny comic's energy.
That's why they always fall back on Billy Crystal. Old people love Billy Crystal.