The traditional puppets of Yoda, despite their extreme limitations (and occasional awkward movements) looked far more realistic than the CGI Yoda. They were real physical objects that for the most part were believable. They weren't perfect, but they were good. The crapy CGI work done for the digital Yoda on the other hand made Yoda look as if he had liquid skin that unnaturally flowed all over his skull, and the surface of his skin looked like it was partially made of reflective alluminum.

Gollum, from the Lord of the Rings movies, had a much more realistic look to the skin and his face animated like a real person's face would. ILM just did a sloppy job with Yoda. I don't care if Yoda merged with the false-looking environments better.