I don't know about anyone else, but when American 
studios went to 100% CG without any drawings, the 
art quality went from low to *zero*.

I'm already signifigantly less impressed with the 
art in anime CG shows compared to cel animated 
shows. With few exceptions, it's just stark and 
bland and lacks, IMHO.

But there's been word that Japanese studios 
aren't going to make sketches anymore either. I 
guess time will tell if that will be true. I have 
a copy of an interview with Miyazaki (spelling 
optional) who claims to stand behind keeping real 
pencils and paper in the animation process. But 
I'm sure paper is a big expense there, even if 
you're not counting the animator's paychecks.

Many Sharp Smiles,
--Drac