Computer generated animation has come leaps and bounds since Toy Story. The effects rival effects done on live-action movies. Fire looks like fire. Hair moves strand by strand. Close-ups reveal facial blemishes like pores and freckles.
Lighting adds to the realism.
Gone are the 'cartoon shaders,' replaced with real radiosity lighting. The animation, while no lifelike, is heading that way. Cookie cutter, but still excellent. It's your stereotypical overcome the evil, save the world story. Sakaguchi, however, does have quite the way of telling a story.