I think what was so disappointing is that the film did show some potential, but just never really went anywhere. The general premise is an interesting one, and there are some great scenes in the movie (I saw the US cut, no idea how the UK cut is), but that's all it seems to be - just a series of good scenes rather than anything that comes together as a satisfying film.
What it needed was a good ending, there was enough good stuff in the movie for it to end up being not too bad if it was capped off with a decent ending, whereas it actually got an ending so dumb (and with a final scene you could see coming a mile off) that you ended up feeling like you've just wasted a couple of hours of your life you'll never get back.
MNS's repuation for always having a twist at the end probably is a hinderance now, as you're always expecting it and anticipating what it might be, and when it's a bit rubbish it seems to let the whole film down.
I actually did really enjoy The Village, being probably the only person I know to have been surprised by the twist.