Re: Star Wars Episode VII
2 effects in TPM still are killer to me - both I though originally were CG, but turned out to be practical. One, the water falls of naboo. I'd have sworn they were some animated fluid sim thing ILM worked up. But know...blue screen, blue dishwashing gloves, and a box of salt!

Second, the overhead shots of the pod racing arena - painted qtips
I haven't watched TPM in, oh, probably 10 years or more, but that's interesting info.
People raved about the effects in LoTR and frankly I found a number of instances that pulled me out by being clear CG.
Creature effects looked clearly CG to me, but...what can you do? It's difficult to showcase a fast-moving cave troll puppet, and even then, you'd just get complaints about "rubber suits" or "a bunch of muppets."
Some people have no patience. Go watch the FX films of the 40's and 50's (if not later). There's some really bad practical effects out there. Even into modern day there's some really bad effects out there. You've got to start somewhere and the tech has to grow and evolve - which it is doing. As noted, there's stuff don't exquisitely in CG AND practical as well as poorly. You can't cite an example of something poor and apply it to a whole industry/method.
The big problem to me is directors/studios who don't really understand it and think you can whip up a good CG shot in a matter of a couple days or something (at least it seems like it). Give it the time it needs and you'll get a proper result. Force it out in a shot timeframe and the results will suffer.
Yeah, I mean, old Flash Gordon serials and Godzilla movies are notorious for "aw, man, you can see the string/zipper!" or looking like 1:60 scale models or whatever.
The TPM had the perfect blend of CG and practical, IMO, and is the most beautiful looking of all the SW films.
I actually agree with you. And I think that highlights a really, really, really important fact: CG, no matter how mind-blowingly good, is simply no substitute for a good story.
I can, for example, happily watch old-school Doctor Who episodes from the 60s and 70s when the BBC had NO money, wobbly sets, rubber masks, and all. Why? Because the stories themselves are engaging and interesting to me. Some of the early Cybermen stories are really cool, particularly when you examine them conceptually given the time-period in which they were shot. By contrast, GORGEOUS films (a la TPM) simply do not hold up to repeated viewings for me because the story itself doesn't engage me in the slightest. There are some cool CG shots in Man of Steel, and Transformers 1. Would I ever watch either again? HELL NO. Why? Because they're boring.
Ultimately, it comes down to a Lucasism from the early 80s. "A special effect without a good story is a really boring thing."
And I'll just leave that line of thought right there.
That's one aspect of FX that people don't realize or often forget, set extensions. There were a lot of set extensions and complete "fake" sets in all 3 of the OT as well as in the Indy movies, instead of CG set extensions and the like thy simply used matt paintings but the concept is the same. It's actually pretty common for shows and movies to do set extensions using CG renders, even ones set in present day with no sci-fi or fantasy elements, it's just that some hide it better than others. Lucas with the PT, in my opinion, went overboard with his using entirely CG sets. that's entirely unnecessary unless you're trying to build some sort of set that can't be physically built.
I think the issue is twofold, and it's not in any way limited to Lucas (although he's guilty of it as well).
All too often, movie-makers want to make their CG the star of the show, rather than the story. As a result, when the story suffers, the CG is both derided as being a cheap ploy to make the film more interesting, and you also end up nitpicking the failures of it (e.g. uncanny valley territory, inconsistent mass, sub-surface lighting, etc.). I remember the Ed Norton Hulk movie, watching Hulk walk away carrying Betty in the rain, and thinking "Why the hell isn't he leaving HUGE footprints and sinking far further into the mud than he is? He's gotta weigh, like, 3 tons!" Why was I thinking that? Because the film itself was showcasing the CG, and wasn't really all that engaging to me in and of itself.
But the same is true of practical effects. You can ignore "the string" if the story is engaging enough. By contrast, no matter how well that string is hidden, if the story is dull, your eyes will start looking for it.
The one advantage that I think practical effects have -- which CAN be corrected, but for whatever reason often isn't -- is lighting. Practical effects, shot on a set, play with lighting more naturally than a CG model can. HOWEVER, if you have good artists, paying attention to detail, or a mix of practical and CG, a lot of that can be covered up. And you can certainly screw it up with practical effects, too, like shooting a model in blue-screen, and then compositing it into another model shot. Like, I don't remember clearly, but it wouldn't surprise me if there were no shadows of the fighters cast on the walls of the trench in the 1977 Death Star trench run, ya know? But, that also goes back to my point about the story. You're invested in it, you care what happens, etc., so you aren't saying "Wait a minute...why is the X-wing not casting a shadow on the wall there?"