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Chris Hu said:

She did a decent job the last time she hosted in 2007.  It would have been interesting to see how Eddie Murphy would have done as a host but I doubt he would have been better then Billy Crystal who replaced him.  My guess is he probably didn't really wanted to host it in the first place the controversy that caused him to decline hosting duties wasn't really that big of a deal. 

More than decent -.-

Ellen succeeds at being funny without insulting people or using cheap shots. It's really easy for a comedian to be vulgar or to be mean spirited in their jokes (Ricky Gervais or Seth MacFarlane to a lesser degree).

So there's a silver lining with a host like Ellen. She's funny and she appeals to a wide demographic (unlike Billy Crystal who doesn't have appeal amongst a younger audience).

It's a brilliant move to have Ellen again. She has 24 million Twitter followers, 7.5 million Youtube subscribers, 12 million likes on Facebook, etc.