
So Katzenberg is promoting his studio while making sly digs at his main competition. Of course he is. It's his job to for crying out loud. You can't hold that against him. Disney are just as pathetic by arranging to open "The Incredibles" (which it can be argued isn't even a Disney film, so it's success wouldn't really proove anything) against Sharkslayer.
As for Loomis' points. I agree 100%. All animation should be treated with respect, especially 'traditional' animation releases. Sinbad sinking will affect Disney's future releases just as much as Dreamworks (who may end up doing no further traditional animation films as a result). By biggest nightmare is Shrek 2 doing considerably more business than the first as it will send the totally wrong message to every studio lot in Hollywood. Not only with regards to CGI, but also with regards to placing as much emphasis on the voice talent than on the animators, which will be another nail in the coffin of animation as an art form. (The fees the voice artists are getting for a total of 10 days work or less is unbelievable!)
Utlimately Disney needs competition. It's the entire basis of the free market - competition is good. It encourages people to work harder and provide better value for money, while monopolies cause stagnation. Arguably one of the main reasons for Disney's reinvention in the late 80's was the threat of competition from ex-Disney animator Don Bluth (who sadly never lived up to his potential after the stunning Secret of NIMH, the film that scared Disney execs in the first place)