I have to agree with Luke and Obi-wonton on this. While Watto didn't bother me all that much, Jar Jar did. Using CG to 'supplement' scenery or armies is fine. LOTR did an excellent job of combining the old technology (modles and costumes) with the new (CGI). Using CG for backgrounds or space battles is one thing, but like Obi said, cartoon like CGI characters are rather distracting.

The main problem with both of the PT films is simply there is too much use of CG. Instead of Lucas constructing real sets and props, he's taken the easier road (some would say lazy) and just left it up to computer animators. True certain puppets like Sy Snootles didn't exactly give us that 'life like' quality but that CGI Sy Snootles looked even more fake than the puppet. Dex, just didn't seem to look as real to me as he could have. The character didn't bother me, except for the crack shot. Stupid stuff like that is just unneeded. Also the creature that farted in TPM. Aren't there better ways to get the kids to laugh than fart jokes? Anyway, I digress. LOTR has pushed the envelope for CGI more than the PT has. LOTR has shown that the proper use of CG can enhance the film instead of taking it over. Lucas has let his fascination with CGI smother his story, and his characters. He's sacrifised great story telling for mere eye candy.

While I support the use of CGI when appropriate, I dislike CGI just for the sake of CGI.