Well there was already lots of talk on the net about "what is an animated film" in the lead up to the Oscars with 2 of the three nominated films being motion capture instead of key frame animation. Now that Happy feet has won, the die hard key frames have really come out punching.
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To start with its the award for best animated film, NOT best animation in a film or best kind of animation. I don't know what you think, but that implies to me that its awarded to what they think is the best film that just happens to be made using animation.
Secondly, isn't there room for everyone? 15 years ago before I was working in animation there was just Disney and that was about it, now there is more high end work for animators than I can ever remember (even just keyframe animators). Aardman, Dreamworks, Pixar, none of these guys were significant employers back then and now they are all part of the Hollywood animation juggernaut. We tried just jamming one kind of animation down the audiences throat all the time back in the early nineties and the wheels fell off. People stopped going to see Disney movies at the cinema and the money ran out.
The richer the tapestry, the more varied the technologies, the broader the influences then the longer the party will continue! Its not what I do, or even like, but if it has more eves on animation I’m OK with it.