Just the plot holes, ma'am.

Rating: Null/10 (21 October 1999)

You've probably already decided for yourself if this movie is racist, pointless, or true to the series, so I won't pursue those points. Phantom Menace is a truly flawed film; what interests me are the failings of the plot.
Lucas' moral construction in Star Wars was simple and clear. The force is the medium of morality, and it has a light (good) and a dark (evil) side. In Phantom Menace, morality is somewhat less simple and significantly less clear. The Jedi Council exists, from which the great forces of the light jedi descended, so it is assumed they are good. When mention is made of the Sith, presumably the dark jedi, they are dismissed as not having existed for ages. We, of course, know differently, but it is their perception that affects how the plot turns. In this era of uncontested goodness, the Council's understanding of Anakin is certainly mysterious; they can "sense" that he's "dangerous," but what would constitute danger if the Sith are gone, as they believe? And their reaction to him is even more incomprehensible. Instead of trying to steer him to the light side, they prefer leaving him alone; surely not the approach one would expect from the Council, which appears active in supporting galactic order.
It also seems odd that Qui Gonn Jinn chooses to train Anakin, considering his belief that he will "bring balance to the force" as legend has suggested. If the Council is in power and the Sith are in retreat, surely "balance" would equate strengthening evil (as we all know it will later in the series).
Also, Lucas has abandoned the idea of constructing evil with plot elements and has resorted to the equation "evil = evil-looking." Does anyone remember when Vader stormed onto the blockade runner and barked to his troops, "Tear this ship apart!"? Neither Maul nor Sidious do anything a tenth as evil (or interesting, for that matter). Amidala tells us "My people are dying!" but in the absence of any visceral proof, the tragedy feels rather pale and distant, as does the evil that causes it.
The presence of C3PO and R2-D2, although refreshingly multi-dimensional compared to Jar Jar Binks, is an obvious attempt to procure audience sympathy. Like most things in this movie, they are extraneous to the plot, and draw ovation due only to their familiarity. Phantom Menace's most enjoyable moments were the glimpses of Sand People and Jawas at the pod race: a sad commentary on the film's ability to generate original emotion in its viewers.
Finally, Phantom Menace represents the ultimate extension of a disturbing trend in 1990s cinema: filmmaking driven by special effects. Much of this film is done because Lucas can do it, not because he should. Few people would argue that Jar Jar Binks was worth creating, but let's broaden our scope a little; why does this film need Gungans at all? It seems that the idea to have an entire race of computer-generated characters struck Lucas as neat some time ago, and he was determined to see it happen in Phantom Menace, regardless of its appropriateness to the plot. Kenobi claims they have a symbiotic relationship with Amidala's people on Naboo, when obviously they don't. Their presence is so forced, each appearance on screen is almost painful.
Phantom Menace could have been a better film, and should have.