Minor quibble: James Cameron directed Avatar, not Peter Jackson.
I went into Avatar the way I've gone into the last couple of Cameron movies. Expecting to cringe. Though he's directed some of the most entertaining films I can name: Terminator, Terminator 2, and Aliens among them, he's not the best at dialogue, i.e. Titanic. But, like Titanic, Avatar won me over. In fact, I thought it had few cringe-worthy moments. It's not a perfect film. There were a couple of the 3-D effects that made me feel I was in a cheesy amusement park ride, and he could have come up with a better name than Unobtanium. I mean come on, really?!?! That's the best you can do?
But, despite the criticisms, Cameron knows how to make an entertaining movie. The plot is pretty simple and has been compared to Dances With Wolves, Return of the Jedi, Pocahontas, and many others, but that doesn't really matter. It's an extremely fun ride. As I said in another thread, if you see it in IMAX, make sure you see it in a REAL IMAX screen. AMC (and perhaps other theaters) have license to use the name, but are projecting on far-from-IMAX sized screens. Don't be robbed. If there's a real IMAX theater in your area, see it there. There are websites like imaxnotliemax.com that can help you find the real deal.
I do plan on seeing it again soon.
Given it's made over a billion dollars, I'm sure the studio will let him make a sequel. Cameron has said there are other moons in that system, and he already has ideas in mind. Let's hope it doesn't take another ten years for him to come out with the sequel.