A recent incident has highlighted the frustration of teaching undergrads. The University does not seem to care whether you teach well or not. There are a lot of opinions on this.
Most people seem to value research over teaching. Most feel both should be done. The truth is many may not be able to do both well. Peter Atkins says as much in the recent issue of Nature. His contribution to Chemistry is probably worth many researchers', since countless undergrads learn from his textbook(s).
I think good teaching should be valued as much as research, unless the research is really outstanding.