Most people suck at Christmas decorations, actually. There's the tacky inflatable ones, then there's people who just pour a few boxes of stuff on their lawn and call it decorated. This looks like crap too. I'm not kidding either, once some house in my neighborhood did something that seemed a lot like that. There was crap everywhere, plastic Santas, reindeer, all sorts of stuff just all over that lawn. It looked bad.
What we're looking for is something that actually looks nice, which becomes more scarce each year. I've always loved the classic "cover everything in white lights." I don't mean it literally since some people do it literally and it looks like crap, but when you do parts of your house and yard to the point where it's like a gentle illumination, it looks pretty great. Colors are nice, if you do it right. A house down my street went with a candy cane theme and it looks really good. The yard and house has lights (in red and white, in that order) everywhere, then there are giant candy canes lining the yard with lights strung on them. It looks much better than it sounds.
I also think it looks nice when people do stuff like outline their house/yard. It's about as minimalist as Christmas decorations get, especially when you use something like a darkish blue which both looks awesome (blue is the best color) and doesn't light it up very much. It looks nice.
If I had the patience I'd love to decorate my house one year. Maybe I'll do that sometime, it'd look pretty good. But that's not what this post is about. To summarize everything, I guess what I'm saying is "if you can't decorate your yard, then don't."
Oh and I also don't like overabundance of colored lights. I just don't think it looks good, at all.