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And everything I read makes it sound like they turned everyone's powers into just different colored energy, as opposed to treating them like actual elements with creative uses. It's just Dragonball Z at that point.
I have to say I didn't really see this at all. I thought that they utilized the elements themselves well enough.
Well, let's take the example of the fight between Zuko and Katara around the holy... pond... thing.
Since Shyamalan decided to make it so the firebenders need a source of flame to be able to use their powers, Zuko sets fire to some of the grass around the pond.
Man... if only there were some sort of
thing in the pond that could be used to extinguish these fires. Some sort of...
wet thing that Katara could somehow control and try to put the fire out.
But since no such, wet, extinguishing thing exists as far as I know, Katara just uses the pond's water to try to blast Zuko, and to defend herself from Zuko's fire blasts.