I guess this means that for the two TV shows LFL will be relying solely on CG as a low-cost, lower-res form of SFX. The first show is all CG and the live action will probably have 90% of its FX done through CG models and digi matte paintings, with the rare model instances farmed out. I guess it makes sense from LFL's point of view, but ILM does more than just Star Wars and they usually use lots of models as well. I can't see how this could really be that practical from a non-LFL point of view.

And yeah, a typical prequel film has more model work than the entire OT combined. Problem is though that they are photographed with digital cameras (except TPM), digitally composited and usually digitally tweaked as well, and then placed in a digital environment; the final image, even though it is model based or uses models, still has that artificial sheen to it.