Awkward pairings aside, I've never felt Hector was overrated, but perhaps misunderstood. He was definitely attached to fulfilling his destiny, but I've always felt that Hector was not as colored as Eliwood or Lyn in the story. By that, I mean he seemed like a less emotional character than Lyn or Eliwood, and Uther's part in the story didn't help much. Yeah, they got angry, but they never expressed much of other feelings.
Combat wise, however, I am certainly not a fan of Eliwood or Lyn (maybe having two sword-wielding lords has something to do with it) but Hector always seemed like a stronger fighter. Lyn was basically a Swordmaster who could later wield a bow, and Eliwood in the endgame simply becomes a glorified Cavalier. Having an axe-wielder as a lord was nice. If trained up, he is basically like a Beserker with decent speed and superb defense, comparable to a Knight, and sometimes a General.