In some aspects, yes CG doesn't always look great; it may look too animated or glossy and doesn't blend well. But that doesn't mean it's bad altogether. As Freddie points out in this video, the main reason we probably see bad CG and VFX is because the movies themselves are just bad altogether. But there are several movies that use VFX very effectively and people dont even realize it being CG elements. Things like adding cars to streets in a chase scene for example, majority of the cars in the scene are not real cars. They are CG cars that were rendered and utilized correctly in order to add to the story.
I think that the main point that Freddie is trying to make is that CG is simply a tool, a tool that is used to help enhance the story that a filmmaker is trying to tell. If that story is not good, then many other elements will start to look bad as well. The effects will call attention to themselves because the audience is not engaged enough in the story.
So in the end, what matters the most is having a wonderful story to tell to an audience, once you know you have a great story, use the tools you have at your disposal effectively; use the right mix of practical and visual effects in order to help tell your story and make it more engaging and more believable for your audience.
