Lou Reed can't sing and that is exactly the point. As for song writing, few artists have sold as many records as Transformer. Berlin is a rock and roll classic. I suggest everyone listen to it. Granted, some of his work does not merit much but few artists have been as prolific. David Bowie and Frank Zappa come to mind.
As for Eno, his biggest mistake was leaving Roxy. Roxy did not suffer one iota. Ambient music is just nice sounding noise.