I think that his fame came more from singing and songwriting, but Prince was greatly underappreciated as a guitarist.
His solo starts at about 3:26. I recommend watching it from the beginning, because it's a wonderful tribute.
His solo is exquisite, in my opinion, at times at the forefront, extending, expanding upon the lyrics and melody while never overwhelming either, and at times also complementing them, moving back and forth until the end.
No showboating, I think, but verve, gusto, pure enjoyment and musicianship. He was asked there to play, and to solo, and he did both masterfully.
Watch/listen it in its entirety, once. Then just listen to it.
As you watch it, note that Prince is not only soloing GREAT, playing well, he's also engaged with the other musicians. He knows the song, knows that he's playing with some of the best musicians in the rock world and is aware of all of that as he plays.
And you can TELL that he's having a blast being there. He's playing his best, and I think that the others in the band recognize it.
As you just listen, note how well what he plays fits, both solo and together with the rest of the band. Clean, complex, precise, not a missed note, nor a note played that doesn't fit the song overall in some way.
At one point he just vanishes, merges back into the song with the band and then emerges again.
All that being said, I was never a huge Prince fan over the years, but that video gave me a new appreciation of him, when I first watched it, years ago.
As to whether or not his death deserves to be of note on Slashdot? The most relevant justification would be Prince's stance on digital copyright, and I don't care to discuss that.
I made the mistake of doing that in general here, years ago, and I shan't revisit that here ever again.
All that being said: Say what you will of Prince, but don't ever say he was a "talentless hack".