I think they're an awesome band - although my interest has waned a little bit over the last few years too. Never fully got into Watershed as an album, it has some awesome tracks (I love the first song 'Coil') but in didn't sustain the interest over the whole album IMO. Saw them twice on the Ghost Reveries tour and they were great. Really liked that album too (although there was unjustified backlash from long-time fans just because they got more popular!).
From what you've said about the new album though, I am more excited to hear it now as have always enjoyed their more melodic side personally (not being a huge death metal fan). I like the Damnation stuff a lot but if they are going to do something similar I have a feeling it could be better than that, as Akerfeldt is a more confident singer for that kind of stuff now.