Really good but also very flawed. My favorite batsman (favorite != best or anything near it)
Flaws:
1.) Lazy on the front foot made him very pleasing on the eye, but that also meant he could get in trouble against quality swing bowling. It wasn't a pace or bounce issue. It was a swing issue and to a larger extent, a moving ball issue.
2.) Could throw away his wicket cheaply when the runs were there for the taking. If he didn't have those match-winning contributions in tough situations (Ahmedabad, Kolkata, etc), we'd call him temperamentally weak for how he threw his wicket away oftentimes. The 'appetite for runs' was lacking. I don't find this to be a big deal but those obsessed with needing to have a 50+ average should point to this. IDGAF (see strength 1).
Strengths:
1.) The strongest case for Laxman is that he made runs when most of the team didn't or couldn't make runs (overseas conditions, 4th innings chases, avoiding follow-ons). It's a team game; you should want players to complement each other in order to increase the set of circumstances in which your team can win or save matches. There's no point having seven clones of the same batsman if they will still succeed and fail in the same situations. It's part of why Laxman was twice the player Sehwag was imho. Sehwag almost always made runs in conditions where any other Indian bat down the order would've made runs. Laxman's 4th innings average is amazing. He also didn't earn his average by FTB-ing in India. Au contraire, his overseas average is very comparable to his average in India, which is rare to say for an Indian batsman.
2.) One of the best at shepherding the tail. He got the most out of Ishant, Zak, Kumble, Harbhajan, and RP Singh when he batted with them.
3.) Wrists
4.) Timing