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Old character. Three friggin' Dragonites. 5 Pokemon in total with quad-weaknesses. Didn't earn his position as Champion, having lost to both Red and Blue in the previous games, and only became Champion because Red quit
I'd much rather have had Professor Oak as Champion in Gen II. Everybody knows he used to be a great trainer back in the day, and it wouldn't have been all that strange if his grandson's exploits as a trainer inspired him to make a comeback. He could also have a really interesting multi-type team, rather than the gang of Dragon-wannabes Lance had on offer.
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Wallace isn't the worst on account of Water being such a dang good type. His team included a bunch of dual-Waters that eliminated at least one of Water's weaknesses, so it wasn't just "spam Grass/Electric move and win." The Gen III mechanics also meant that his Milotic wouldn't be 1HKOed even if you used a Grass or Electric move.
I consider Alder the worst champion. His team is just pitiful for the most part, it was so underwhelming to fight him...