The captain had just 275 hours total before his type rating on the 737. The F/O had even less with 150 hours TT. Not much real experience to fall back on especially as the F/O type rating training was very limited by normal standards.
The report mentioned the pilot (captain?) inadvertently disengaged the autopilot and continued flying manually on flight director. The 737 was well displaced from the centreline of the ILS and a large heading correction was made close in and while well above the glide slope. The flight director needles would have been all over the place like the proverbial dog's breakfast. Hurried and extreme elevator movements would cause an incompetent pilot to `chase` the FD needles which were probably at their extreme stops by now.
Flight Directors are an aid to instrument flying. They are not the be all and end all to instrument flying. That said, experience has shown many crews are FD addicted and become apprehensive without them as a crutch. The inevitable result sooner or later is a close call or a crash.