Of COURSE it doesn't automatically mean it's bad, it's simply it's own continuity. However, I found the characters cliche (Saying something, since these were GIANT ROBOTS) and he executed his idea poorly. It COULD'VE been good, but it wasn't.
As for why people trust him with these things, even if they aren't good, people watch them. And if people watch them, maybe they might want to find out more about the source material. Therefor, with a big-name director, the rest of the franchise gets recognition.
Honestly, a lot of them aren't bad, but they are not good. Of course, you are entitled to your own opinion. I've met people who watch Jersey Shore and think that Overboard was an amazing movie. So, yeah.