CGI can get way over the top, I'm thinking about the Wachowski brothers' Matrix movies. The Matrix was an exciting movie and the CGI was an interesting compliment. But, for the last two Matrix movies, the CGI just got out of control. There was too much, it was cheap, and it looked video-gamish.
There were some bad CGI moments in LOTR (like Legolas jumping off the back of a troll, sliding down the Oliphant - well almost any Legolas "stunt," - or the Army of ectoplasm.) but the CGI was also quite stunning. What they did with Gollum was far better than the Star Wars Jar Jar disaster. Also, I thought the battle scenes looked real, despite a few places where you could tell it was obviously CGI. Like Saruman's "blocks" of troops outside Isengard.
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