The action sequences certainly make the movie but disappointing story, weak characters along with a pathetic villain added to predictable events really sink it. I got to say I also want to see more Iron Man and less Tony Stark, just as we want more Batman and less Bruce Wayne. Same principle applies and Tony's personal "difficulties" really fell flat to me and the time wasted with that kid could have been better spent fleshing out other important characters which felt like cardboard cutouts to me. Believe me the special effects make you want to forget everything else but when the dazzle fades you return to mediocrity.
Whole film felt lazily done, throughout I sensed I was watching an inferior version of other films. I certainly felt no emotion for any of the characters and too many scenes just fell flat. The finale was entertaining enough I suppose but hardly makes up for the rest of it.