ILM's work on the prequels could have been better. When Peter Jackson was making The Lord of the Rings Trilogy, he wasn't spending his own money, he was spending Newline's, but George was spending his own money to make the Prequels, he got a little cheap. That how I justify with the hit and miss effects work in the Prequels. But one year later after Episode 3 ILM won the Academy Award for Visual Effects for Pirates 2, which was financed by Disney. On Fantastic Four 2 Weta did the Silver Surfer, and people were complaining how poor the surfer looked (except for one shot, which you can see on the Weta Digital website, which that one shot they are proud of), a CG artist came forward to say why their work wasn't that great, due to Fox's lack of financing. Did anyone see the Water Horse? Weta's work on that film didn't look to good. The Bridge to Terabithia didn't look that good too, I read due to lack of financing too. But King Kong looked geat, and got the Academy Award, boy did Universal shell out the dough for that one!
James Cameron is actually promising photoreal CG characters for his film Avatar, with his new breakthrough motion capture technology. He has said Weta has developed phototreal skin and cloth simulations. Spielberg and Jackson are going to be using all of this new technology for their Tintin movie. Cameron is also promising photoreal CG environments.