@darklordoftech: Yes, exactly.

@MaximRecoil: I simply disagree with this - people weren't used to seing CGI dinosaurs, so they seemed much more real back then, than the seem now - I know this, because I experienced it and my dad said this as well, last time we watched Jurassic Park. I just watched the 1st Harry Potter movie yesterday and I could spot things being obviously CGI, where I never spotted them before. And the LOTR example is a very good one as well - when I first saw those movies, they seemed flawless (visually anyway) and now, I can see all kinds of things looking fake and CGIed, though I can still see less CGI fakeness there than in the Hobbit movies, because there is simply less CGI - like Neverar says, people just learned to recognize the signs of something being CGI but in the early days, most people thought it was photo-realistic. You may be the exception to that but not the rule.

Sure, some CGI always looked bad (CGI Jabba is a great example) but most CGI definitely seems much more fake now, than it did when it was created.