Despite the heaving endowment of Samantha Mcleod, the film would've done better with audiences and critics if traditional effects were used. When budget films use effects, they're usually better off going with prosthetics and miniatures, as the animator doesn't have to worry about lighting and composisting, where as all of this has to done on the computer with CGI, which only looks good on the very highest budget (War of the Worlds, Iron Man).
Look at Peter Jackson's early efforts or Roger Corman films. Despite them being decades older, the effects are more believable than a 2D sprite, plus you'd be able to see actors and creatures actually interact properly on the same frame, even if they are rubber puppets. They share the same physical world and are lit consistently, with cause and effect that appears more natural. Even the Phantom Menace fails to get this right; check out Ewan McGregor's eyeline when he meets Jar-Jar for the first time. It looks awful.
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