Yeah.
Titan AE was pretty good, but I think the CG for 'New Earth' sucked. You know the bit where the camera pulls back from Cale and Akima out to space? The cliff that they're on well, didn't look to good. See it for yourself.
When Photo-realistic CG Humans are like a walk in the park for Computer Animators, well, yeah. It's just that the only thing going for FF:TSW was that it had realistic humans and Aki Ross's hair was a technological breakthrough. I asked my friends, and most of the didn't know the story of it until the read the subtitles on the DVD version. My parents didn't know that it was computer animated.
My point is that until it's easy to do CG Humans, than they shouldn't sacrifice the story so much that the CG itself takes over.
Kudos to Sqaure though for trying, but the loss of the movie also made Sony buy a share of Sqaure to save them.