Chavez is an incompetent ruler, moving venezuala away from democracy.
But venezuala's had a run of incompetent rulers, who'd previoulsy been quite happy leading the majority of their nation into absolute poverty, while a small elite were able to prosper. Chazev is just incompetent in a different way. Working to help the least well off (and his own associates) but doing so with a pretty poor understanding of economics, and a total reliance on oil wealth.
The US was quite unconcerned about venezuala's shift away from democracy when they supported a coup against Chavez's democratically ellected government. It's hard to now take Rice's concerns about Chavez's authoritarian shifts, when we know the state department had prior knowledge of the planned coup, and was quite happy to let it go ahead.
There's plenty of hypocrisy on both sides of this one.