Wow at the long "CGI vs Practical Effects" debate.
I find the the hate that some film buffs have towards CGI to be very fascinating, and also incredibly tiresome.
It kind of reminds me of the "CGI vs Classical Animation" debate that many animation buffs engage in.Computers just seem to make some people furious, and I find it kind of funny.
In my eyes they're just tools that can be used to create really awesome stuff, nothing more nothing less. The puppet in the video looked pretty charming, and I'm sure it would look just as charming if was a CGI creature. It's a nice design. A good modeler, and animator could easily breathe a lot of life into it.