Sure he did. Since you insist on ABC, I'll break it down.
A. In the beginning of the film, Hal is kind of a loser. He's selfish, arrogant, but with a lot of talent and potential that isn't being used and reached. He takes huge risks, because he wants to win due to his selfishness and thoughtlessness, and because he's trying to buck authority and maintain his individuality and choice of lifestyle. But he still gives in to fear in the end, almost dying because of it. He is doubtful about his ability to maintain a relationship with Carol, and seems to have loose attachments with women. He voices these concerns with Carol in their first bar scene together, where he apparently rediscovers his feelings for Carol, but admits he is afraid of screwing up with her. He won't talk about his insecurities or his weaknesses though, and chooses to run rather than to open up to her.
B. Hal finds Abin Sur and gets the ring and the lantern. Hal realizes he has powers. He is initially somewhat baffled, and maybe a little afraid, but he manages to overcome that trepidation (fear), and as he is introduced to the wider universe, he considers becoming part of the Green Lanterns, where he would lose some of his individuality and have to submit to a a larger authority (The Guardians). He's growing a little less selfish, because now he realizes there are bigger things than him out there. He seems to like the idea of being a hero, relishes it, but with some arrogance. Because of this, Hal gets smacked down by first Kilowog and then Sinestro, and his main conflicts, fear and his arrogance, and his subsequent hidden insecurities, rear their ugly head. He stumbles here. This is pretty normal in character development. It's the first major test. At this point, Hal is afraid to use his ring or join the Lanterns, and his great insecurities, which have only been hinted at thus far, are fully revealed. However, he takes a step toward overcoming his fear and becoming less selfish when he uses his powers to save the party from Hector. He's relatively unnopposed, but he still saves the day. He begins to relish what he can do, and shares it with Tom. He also reaches out to Carol and opens up a bit, which he was unable to do before. He also seems to have stopped sleeping with nameless blonde women, and to be almost ready to commit to a relationship with Carol. Hal takes a further step toward being responsible with his power when he tries to rescue Senator Hammond and the others from Hector. He stumbles again as he faces the fear that Parallax can cause through Hector, but manages to overcome it in the end. A setback, but he's learning, though shaken by the experience. Afterward, Hal becomes even more open with Carol, and now admits he is afraid. He can talk about his weaknesses and insecurities now.
C. Realizing the stakes, Hal decides to do the responsible, mature thing, and submits to authority. Hal asks The Guardians if they will save Earth. Hal, instead of just doing his own thing, has found a balance between recklessness and responsibility, and individual action VS obedience to authority. He tries to get them to agree to get involved. When The Guardians refuse, he demonstrates the willingness to sacrifice himself to protect The Earth. On Earth, Hal says goodbye to Carol, knowing he may not come back. He reveals his feelings for her. He is no longer the selfish, arrogant man who hides his feelings and insecurities, but rather admits them and faces them head on. But he has one more conflict to resolve: Fear. And so, Hal, facing the embodiment of fear, faces down Parallax, gets tested there too, and overcomes great fear by defeating Parallax.
So he went from being a selfish, reckless, insecure *******, to being selfless and willing to sacrifice for others and face his insecurities instead of run from them, and having consideration for other people's feelings. Relatively gradually. I feel like that's a pretty decent character arc.
And that's all the arc Hal has ever really had. He is who he is, he gets a magic ring, and he becomes a better person with that potential and the help of his friends, but is still who he was, just a little better morally speaking. I can't tell you why it didn't appeal to people. Ryan Reynolds is popular, and magic rings are cool.
