That's about right... back in '98 when I was doing char animation at UMass, we used to say the same thing about all live objects, because the technology just wasn't there yet. We were still struggling to do things like trees without encountering this issue, though obviously, people wouldn't get creeped out by a tree in that zone, they just thought it looked stupid. You had to either go all out to make it look great but not animate well, or you had to make it all cartooney with good movement.