That's interesting. I grew up with PC, VotDT, and SC from the BBC, and the animated LWW. So I never saw the animated characters en mass till later, when I saw the BBC LWW. But the little bit of animation in WotDT (I can't remember if there was any in SC & PC) never bothered me. I thought it made the birds on Ramandu's Island seem more magical and un-earthly.
The numbers surprised me when I saw LWW. But again, once I got used to them I thought it kind of worked—I liked them better than the so-so costuming used for other animals. I actually remember wishing they'd done Aslan that way, so that instead of a so-so puppeting job, you'd have an other-worldly effect.
I usually try to find a way to justify these things so that I can better enjoy the story, so objectively maybe it is terrible. ;-) But I've learned to like it by thinking of it that way.