Fascinating conversation. I've been working on a story idea myself that initially grew out of an idea I had for a prophecy. It's really interesting to see not only people's opinions on prophecies in general, but also the saturation level with this story element.
I'm curious, though. For those who have claimed that a prophecy is "lazy" writing, why do you say so? Exactly in what way do you find a prophecy to be something akin to a cop out or shoddy writing in general? Why place such a stigma on the concept (I don't doubt the legitimacy of the opinions, I'm just curious as to the rationale)?
Let me see if I can do this by breaking down a story.
The Matrix: in which we are introduced to the quest for the Chosen One who will - do something and be really bad ass.
Firstly, we know there is a Chosen One. We don't know why. That is, there are no mythologies, world views or religious beliefs in which this is embedded - though a little bit of something does emerge as the movies go on, sadly what emerges is largely incoherent, which is why the trilogy ultimately fails.
Secondly, we are introduced to Neo, who is apparently the Chosen One. He has some sort of inherent skill at manipulating the matrix which Morpehus identified by watching him. What Morpheus saw in him is never explained. Why this particular person should possess these charactertistics is also never explained. We don't see anything particularly special about Neo except that he advances quickly in his training to control things in the matrix, which we are told is exactly what we can expect the Chosen One to do. There is no indication why this person should have these powers - we must assume they are "in born". While this is traditional hero fare, it's weak in today's storytelling because it lacks a psychological element or a character arc - that is the hero has very little changing to do. Basically the only way Neo changes is to go from being sure he's not the Chosen One to believing he is.
Neo goes to see the Oracle who messes with his head by saying he is not the Chosen One, but we the audience know quite clearly that he is and she's just being cryptic. We know this because we have Trinity saying she loves him and she is to love the Chosen One, blah, blah. We also know this because if he wasn't the Chosen One, the movie would be over when we find out it's not him because the whole movie has moved forward purely on the crux of finding the Chosen One and there is no movement in the story towards trying to identify another Chosen One besides Neo.
Surprise, surprise, Neo turns out to indeed be the Chosen One (the Oracle's false prophecy to him serving only to provide a little second act angst for Neo and to give him the platform from which to make his one character change). He becomes bad ass, which apparently is the fulfillment of the prophecy.
So there's a prophecy and a Chosen One, but we cannot decipher the mystic-religious setting from which the Prophecy emerges (at first it's just there's a psychic who can see the future, then it's that the psychic is a program in the matrix who argued with another program, free will, dying Ones, rebooted matrixes, death to Zion - huh?) While the woman playing the Oracle sells it well, the Matrix is essentially a fairy tale, a classic hero cycle - Hero is born from ambiguous circumstances, Hero is called (by Morpheus in this case), Hero faces challenges and enters the darkness to emerge triumphant and able to bring boons back to his community.
Now, given the right innovative setting, such as the Matrix, such a simple story can still work - because a lot of your attention is busy being impressed at the world presented - I suppose Avatar falls into this category as well, because I could break it down essentially the same way. So it all falls to the world-building if you're going to rely on such a basic story form. The problem in general with prophecies is that the world-building of the story isn't strong enough to make up for the bare bones storyform.
This is why using prophecy as a springboard for a lot of psychological struggle and change in your characters can be good. Using it as an in-depth way of seeing into someone's struggle with destiny can sometimes be good, and there's something to be said for watching a well-thought out transformation from zero to hero - these are things Dune does well. Using prophecy to explore the differing philosophies of the characters, to explore your fictional universe's different points of view about reality, etc - these can also be good uses. BSG tried to do this, but it actually got bogged down in too much psychological angst and could have used a little bit more of the basic storyform.
There's something really satisfying for all of us in seeing that basic hero cycle play out (thus why Star Wars OT is pleasing - and it is strong on the Chosen One scale because we really follow Luke's transformation), but it needs plenty of window dressing to work these days.
There are also other uses of prophecy - but they have largely fallen by the wayside. As
Kegg mentions, they were originally used to explore the idea of inescapable destiny (and not in a good way). See The Mists of Avalon for a great exploration of this more ancient use of prophecy in a story.