We're doing some VanHalen songs in a mini-set in one of the bands I play for and I'm being constantly amazed at how insightfully EVH works his knowledge of theory into blistering rock and roll. From tapping melodies over fretted Maj7th chords ( smart!) to his use of 4th chords on turns, everywhere I look I see how his legendary chops are based on a thorough knowledge of theory combined with a key understanding of rhythm.
From a player's perspective I don't think anybody else has operated at his level. Some neo-classical shredders are technique monsters (Yngwie, et. al.) using Hungarian Minor scales and such, but they don't weave the theory onto structure like EVH can nor do they incorporate his funky, can't stop bobbing my head syncopation into simple guitar licks, or his ability to place a hook.
Panama is a crapload of fun to play. Even his easier stuff like Dance the Night Away or Jamie's Cryin' are loaded with some beautiful chord work. Listen to the B section on Jamie's Cryin' and cop those chords. Man, that is some tasty stuff.
I guess sometimes you never really learn to appreciate a player until you have to cover him and get inside his head as you learn the material. I never gave him the credit he deserves.
Chuck