I know that Hollywood's over-reliance on CGI is due to it being a cheap, non-unionized industry. But I think there's another factor: Extreme prejudice against animation.
In the last decades, executives, producers, and directors came to expect doing films that are simply impossible in live action. They want alien worlds not seen on Earth, amazing creatures with multiple heads, wings, and horns, and human characters flying like rockets or jumping over buildings. Nothing like this can be easily made with practical effects in live-action. They are just choosing the wrong media. Only animation can achieve all these things.
But animation in the West is stereotyped as a thing only for children, so how do you handle the problem?
Easy.
You rely on animation that can be photorealistic enough so you can pretend that Henry Cavill can fly and punch alien beasts. That's CGI animation.
So, you have an industry that actively looks down on animation, but is deeply dependent on it, although secretly.









