I didn't say it was bad, just not as good as e.g. The Incredibles. If I was judging it against movies in general, then it's superb. However, I stick by my guns that I believe it ain't quite as good as Pixar's more recent efforts.
It's purely a matter of what your scale of judgement is.
Toshiba's HD A1 makes "Cars" look nearly high definition. This player really handles animation well. In fact, I think the differences for animated transfers in high definition are gonna be much harder to detect than live-action. I really studied the scenes looking for some flaws but it is a brilliant transfer and it has the same three dimensional depth of some of my HD DVDs. My guess is that you will need a very large screen to detect much of a difference.
So just because the kids love them, the storytelling and writing has to suffer? Animation is simply a medium of choice. I don't want to go on a rant here, but I'm so tired of animation automatically being "just for kids, adults second", mainly in the US. I'm simply saying, "Why does it have to be this way? Who said it has to be this way?" Animation is capable of so much more. And I think Pixar has taken a dramatic step back. The Incredibles is a film kids can grow into. They will love it for the visuals and bright colors, then when they are older they will enjoy it on another level and realize its really about a dysfunctional family, not nostalgia. It was so refreshing. It was like a real story accidentally squeaked through and made it to theaters intact. Cars is back to their standard fare like Finding Nemo. Safe jokes and manipulative sentimentalism. Cars and other films like it are films kids will grow out of. Sure, they may still have a place for it in their heart, because they liked it when they were a child, but its just nostalgia.
I do have a problem with furry animals, I feel they have been done to death ever since the dawn of animation, but if your going to use them, do it with some substance underneath. The old Warner Brothers and MGM cartoons are a perfect example of this. Those are as fresh today as they were when they were created. And they were made for adults, not children. That's why they still work. This year's slew of furry animal films was stomach turning. Open Season looked like Over the Hedge (not exactly alike, I know...). Your right, Studio Ghibli does use talking animals, and while those films are more of an acquired taste and not my cup of tea, I have great respect for them. Again, there's more going on than fart jokes and topical pop culture gags. They are also more metaphorical than literal, which helps tremendously. Something one can't say for Madagascar, for example.