I think they went too far with the bomb storyline and I think they should have worked harder on redeeming Janet instead of building up the crazy (there are some little moments but not enough). Other than that there's really nothing OTT on AMC at that time, and most of the story worked.
I think one of the bigger problems may have been struggling with what to do with longtime characters who had run out of story (Brooke, Palmer, Adam, Jack), and what to do with various popular, happy couples (Erica/Dimitri, Edmund/Maria, Tad/Dixie). And that continued to be a struggle even under Broderick. The show had also failed to bring in a lot of good fresh blood (I guess the most popular new characters who stayed around more than two years were Edmund and Maria, who were soon ruined/squandered by the endless babymaker melodrama).
It's interesting though, when Marlena and others praised AMC for going back to its roots, because, as you mentioned, there's still a lot of hysteria in the writing. I think this worked to great effect in the Michael Delaney story and the ripple effect it had. Other times, it was just ugly (like Papa Santos going to have Anita's hymen checked).