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Well, for one, he's the best commentator the WWE has. I know that statement might be controversial to some, but think about it. This guy has been doing the job since the late 90's and is excellent at calling the action when he actually does. He always puts some kind of emotion into his calls and tells the story of what is going on in the match very well. His heel character can get in the way a lot of the time, but a lot of people confuse that with his actual commentating ability, which is silly. If anything, Lawler is the problem on Raw, because he contributes nothing meaningful to the broadcasts anymore besides getting into meaningless arguments with Cole. Booker is such a better foil for him right now.
I never thought Michael was THAT bad of an announcer prior to WWE trying to make him a heel. I think the crowd reaction he got had more to do with him replacing the irreplacable Jim Ross, and fans were going to hate whoever got that spot.