In my experience, Impress's biggest problem is that their stock templates are pretty amateurish. Given a good professional template, it can do everything that really is necessary for presestation software to do. Excessive use of the bells and whistles in my mind takes away from a presentation rather than adds anything. Having to endure presentations where a speaker pauses to allow his bullshit aimation to finish is mind numbing.
I disagree with most of what you say. :-)
First, personally I don't care about the templates; I don't use them anyway. Almost to a T, my presentations use graphics and text on a plain black background. Makes things simple, but it has a couple nice properties like the fact that the edges of the screen aren't typically visible.
Second is the utility of animations. I'll be the first to agree that they can be used pretty ridiculously. However, they can also be used very well. For instance, I often find myself trying to illustrate a process, and often showing how things go around can be done with animations. I'd say most of the time an appear/disappear effect suffices (and I will sometimes "animate" that with separate slides), but not always. I've seen a couple of presentations that make fairly heavy use of animations and were rather well done, because they add rather than distract.
Third, there are a lot of other problems with Impress. I don't remember most of the annoyances I had with it, but I can give an example which is what ended my last attempt to use it to make a diagram not for a presentation: terrible block arrows. I consider that to be a basic shape, use it a lot, and it is just broken in Impress. The width of the body is proportional to the width of the entire arrow, which means that (1) two arrows that are different sizes will have different widths and (2) an arrow with a different width and height will look retarded. Compare to PowerPoint. PowerPoint will use the same width of line throughout, which solves (2), and gives you handles via which you can adjust properties like the width of the line and size of the arrowhead, which solves (1). When I was working on that diagram, I spent a few minutes playing around trying to figure out if there was a way to get what I want, and gave up and rebooted into Windows. (I'm sure that the approach is achievable in Impress -- e.g. draw the outline with a tool -- the point is that even something I consider an incredibly basic task is a PITA.)