Agree, he did seem sloppier in that episode and his tone was more fuzzy/undefined. He used to be dead on, very crisp in his playing.
I wouldn't say he's unlistenable but for me I can't take much more than a few songs of his. For non-guitar players the reaction is interesting when they first see YJM. My wife was watching the G3 DVD with me and Yngwie came out and is sweeping and shredding all over the place and my wife was like "He's like Mozart on the guitar!"
About 3 minutes later she said... "Is that all he does?" I had to answer with "Yeah pretty much..."