Regardless of whether the characters exist as drawings, puppets, figures, or CG models, I don't think anyone would confuse any of them for real people with real skin. They're all caricatures to a certain extent, even as certain details get more realistic over time. Disney is not going for absolute realism through their animated films.
People of all ages, including adults, have enjoyed puppet and marionette shows for centuries. Stop-motion is an art form in and of itself. Children have always played with dolls, especially baby dolls. Many adults collect resin figures of their favorite characters, and many adults collect porcelain dolls and even Barbies. Ventriloquism shows remain popular, and no one ever confuses the dummies for real people. It's about being able to project one's self onto the characters in question, being able to relate to and enjoy them. Plastic, vinyl, porcelain, clay, resin, cloth . . . does it really matter? We all have to suspend our belief to some level. And if a character like Rapunzel actually does look more like a doll to some than a hand-drawn character, I don't really see the issue. She basically is a doll within the realm of the computer anyway, and we breath as much life into any doll as we would in a drawing. It's about much more than the physical appearance; it's about the motion, the poses, the acting, the weight, the believability and emotion. In the hands of a gifted animator, even a flour sack can be given life and find a sympathetic audience.
The whole point of animation is bringing something to life. It doesn't have to be intangible for the sake of some personal ideal for the illusion to work. I'll agree that becoming too realistic can be perceived as pointless; why animate when you can just shoot live-action, for example. But I would hardly call a character like Rapunzel "realistic" in that sense just because she's tangible (and I'd hardly call her a bug either

). Many people do like the effects and stylized worlds that can be achieved through CG, something I've always felt to be more closely related to stop-motion than hand drawn. And while I'd personally prefer to see more hand-drawn in the works, I do enjoy and appreciate what the artists can do with computers and often get lost in the beautiful worlds they create.

I do realize that everyone has different preferences and opinions; what I fail to understand is why anyone continually pushes very narrow, personal opinions over their extreme dislike for CG onto everyone else as a "fact" that it's supposedly a poor medium.
