I disagree. I think Doctor Who was meant to be a scary show, and when you fill a show with gags and pratting about, it can't be scary. That was certainly what attracted me to Doctor Who in the first place, and what left me cold about many of the Williams stories (especially Season 17). City of Death, in particular, would be my vote for most overrated Doctor Who story ever made. I remember when I first saw it and it did nothing for me because it just wasn't scary like the best Doctor Whos are.
Completely agree with you about City of Death. I know it got the high number of viewers because there was literally nothing on the other side but I watched this on VHS for the first time many years ago and could find absolutely nothing to like about the story.