He made a stellar performance as Agent Smith in The Matrix, and I don't think that movie would have been the same without him. However, it was such a notable role that it detracts from his role as Elrond.
I'll go along with a joke about an actor playing two memorable roles in two different movies.
If you're trying to turn this into an actual criticism of LOTR, you're on your own. That's just desperately silly.
Dan