And if you watch the extras with the movies, there was a lot of good and fun with the miniatures. Or bigatures as they came to be known.
I liked Jackson's approach. He didn't go with just one choice, he used whatever would work better for the shot. So the Watcher's tentacles were CGI. Animatronics or mini's just couldn't get the dynamics he wanted. But adding the water and splashing took a real extra umpf of work.
Then look at things like the water horses in FotR when they crossed the ford by Rivendell. I can not fathom how that could be done in a practical sense with mini's.
What about using a strictly motion capture system like they did for Beowulf? Motion capture really worked well for Gollum. If memory serves Gollum was redesigned to bring in all the facial contortions and physicality that Andy Serkis was doing when he would perform his lines. So not only did he provide the voice, but he really did provide the physical performance for the character as well.
In truth, animated may be (in my mind) the safest road for Silmarillion. Especially for continuity purposes. Many of the elves are left unchanged from beginning to end. And yet many men characters have to age a lot throughout the entire story. I personally think it would work better than using makeup to achieve all the age changes. But maybe I'm wrong. Also it will take time and funding to convince any studio to create films for the entirety of the story. Digital animation would allow character to remain visually intact, even if voice actors do not. There is also a potential for cost effectiveness for later films to avoid returning actor cost. (This may be a jaded comment, but it could easily happen)
Quote:
There is no substitute for real-life, no matter how real CGI looks.
This may be true, but then perhaps adding CGI into the middle of a real shot would look worse than a pure CGI shot without any real elements? Just a thought.