CGI can be good when it is done properly. LOTR is the best example of this, just look at Golem; a completely digitised character, but totally believable, because the creators took the time and made the effort to develop the character properly, and the animatorsdid a great job making his movement natural (unlike Jarjar who seems to walk in an unnatural boobing motion... but that's the least of my concerns where Jarjar is concerned). Also as I said in that other post, most of the CGI in AOTC and TPM is to shiny and uniform looking to be believed. In LOTR all the CGI characters look different from one another, even in the battle scenes; in AOTC all the soldiers are perfectly identical, right down to the way they wear their uniforms and their movements; it doesn't look natural.

Personally I think CGI generally belongs in computer games, not movies; but if it is done right, it can work. I think the difference between AOTC and LOTR is that LOTR used cgi when it was necessary (to complement the story); AOTC used it whenever possible (to -be- the story).