From reading that quoted bit he seems a big over reactive to it, however I'm sure it was the context megan fox said the original statement. Probably in a denigrating way towards Bays types of films. Probably was basically saying she's much better than to be doing Bays sort of films. Something yet to be proven as far as I know.
As far as no acting, some times you have to act even harder in big special effects films to sell it.
Just look how George Lucas who isn't good with actors couldn't get excellent actors to act well in the prequels. There is an art to sell the ridiculous and unreal.
I can be a bit of a Michael Bay apologist though.
Although look at his films
Bad Boys 1 & 2. First ones a good solid entertaining above average action film. The second one is one of the best action movies for action of all time. Sure it's god some stupid stuff in the script, but it'd be hard pressed to name a movie with as many large scale excellent action pieces. It set out to push it to 11 and it delivers. It is though a boys film haha
The Rock, another solid better than average action film.
Armageddon.. the film is dumb, is one of the most scientifically inaccurate films ever, pushes hard to try and sell the emotion, but it's still got a fair bit of entertainment in it and has good sceptical. It never takes the story seriously why not actually admitting it is not doing so. Probably my least favourite of his films. The only one I don't own on dvd.
Pearl Harbour, the film fails from the love story stuff, but i watched it again last year on Dvd and did quite enjoy it still. I still think there's more good than bad, but it just goes on for too long and the love story angle didn't quite work. Oh and Kate Beckinsale.. lover her.. and yeah didn't this launch her hollywood career..
The Island probably the best all round film he's made that isn't ridiculous or catering to just young men, or what have you. It's a pretty darn good film.
Transformers, a basically perfect execution of a summer popcorn blockbuster.
Transformers 2, is probably actually his most flawed film, however a lot of it is darn entertaining. And I still blame the problems of the writers strike for the main flaws. No script, a start deadline and bay sitting up at ILM working on Animatics for the action for the film with no script.