What's so horrible about it? The singer jumps around a lot, but hits the right notes, Baxter's - didn't he play on the original too? - soloing is fluid and kicks some butt, Simon Phillips swings (always the case with him) and so does JAE (not always the case with him). Walsh doesn't contribute that much. My only gripe is Keith's piano playing, he tends to sound like a slightly mad machine (a Glenn Gould influence?), a bit harsh/robotic in his timing (but that is just his style, it worked with ELP, but Elton John or Billy Joel could have done a better job here).
I'm neither overawed by Steely Dan (they're a bit "elevator music for Westcoast intellectuals" to me) nor do I think them horrible.