Word for “decorated too much”
Solution 1:
I don't know of any better single verbs than overdecorate, overornament or overembellish. Bedizen is good if you don't mind obscure. I might be tempted to coin baroquify. Related, possibly useful phrases include to tart [something] up and gilding the lily.
Solution 2:
Adjectivally, you could describe something as baroque:
extravagantly ornate, florid, and convoluted in character or style
from dictionary.com
or florid:
flowery; excessively ornate; showy
from dictionary.com
Verbwise, I can't think of any single word that encompasses that extent of a description, unless you want to go for something like overembellished with an additional phrase to point out how far beyond the pale it's gone: "He had overembellished it to the point that it became a grotesque parody of its potential nature", or "he had embellished it well past the point of baroque floridity."