The villains in Iron Man 2 were indeed pathetic. Tony was never in any more danger than he was in the first 40 minutes of the first movie. Tony building the first suit was pretty much his way of saying screw you to God after being put in a life or death situation. The problem is that he always feels so invincible whenever he is in the suit.
What was great about Avengers was that there was finally another villain that could threaten him on a physical level. Oh yeah, and no stupid getting drunk at parties.
The problem in IM2 wasn't Tony, it was not giving him anything interesting to do during the entire Act 2 of IM2.