George Lucas seemed pretty satisfied when filming the Star Wars prequels to plop himself down in a chair in a room with a giant bluescreen set where he didn't have to walk around and direct in a hot, sandy desert for hours like in the original films. But the movies looked a lot worse for it.
Episode III was pretty good despite filming in 2K.
Source? As a CGI VFX artist in a previous life, I disagree vehemently, and I think you’re spinning an untrue narrative. I’ve never met any VFX artists, whether practical or CG (and I’ve met many), who weren’t keenly aware of how bad effects were and how poorly they age. The few practical folks left are way less enamored of CGI than the CGI people, and they were always that way (by definition?), so it seems like you’re mixing them up.
The fact that shoddy effects get used speaks to directors and budgets and production studios and what audiences pay for, it has almost nothing to do with the artists. That said, you’re also comparing bad CGI with good practical effects, which undermines your point. There were plenty of practical effects that lost their charm as fast as any CG ever did, and today there is plenty of CGI that remains convincing; it depends entirely on which effect and which shot in which movie you’re talking about.