...I absolutely see where you're coming about the CGI feeling fake. We did lose that wonder at the special effects when CGI took over, but it can have its uses...especially in what you called "fooling the senses."
If overused, CGI, I believe, takes away from the movie....makes it look two-dimensional and ultimately, phony. I think people in general don't like phony. But if you use CGI in a very casual and nonchalant way, it can be amazing.
Here's an example....a few months back I say Atonement in the theaters with the future wife. It's a chick flick and was depressing as hell...but there was a scene that stood out. It takes place during World War 2 and one of the main characters is at the Battle of Dunkirk. The scene was absolutely amazing. I knew I was looking at CGI here (have a trained eye for that thanks to the prequels)...but it was so flawless and so perfect that it would have fooled anyone who didn't know any better. Looked like we were actually there!!! My fiance was fooled and I thought it was great and added an awesome element of realism to the movie.
So CGI isn't all bad...when it's used like Lucas did or like many fantasy type films today do...it falls short....big time. But used as a background tool...it can be an amazing thing.