Yes it deserved the Oscar big time but of course it didn't win because it wasn't made by a studio named Pixar.
I don't know if that's fair. Pixar has definitely dominated the category, and I do think some of their wins are questionable, but it's not like the academy refuses to give the award to other studios. Out of the 12 awards that have been given since the inception of the category, it's been won five times by non-Pixar/Disney films.
Well it was up against Toy Story 3. I honestly think if it was against Cars 2 or Brave it would have won.
Meh. Still should have won. Toy Story 3 is one of the most overhyped movies I've ever seen.