I think digital effects still rarely look as good as the peak of Hollywood practical effects (call it… idk, Alien in 1979 through Independence Day in ‘96 or so, roughly, and yes I know ID4 also had computer fx in addition to lots of miniatures and models)
Having to do things for-real also kept things grounded. Modern action movies are often cartoon-like with supposedly human characters stringing together super-human moves that’d leave a real person with dislocated shoulders, broken bones, and brain damage, because they’re actually just CG, no human involved.
[EDIT] OMG, or take Bullitt (1968) versus, say, the later Fast and the Furious sequels (everything past Tokyo Drift). The latter are basically Pixar's Cars with more-realistic textures. They're cartoons with live-action talking segments. Very little actual driving is depicted. Bullitt may have used the movie-magic of editing, but someone did have to actually drive a car, for every shot of a car driving. Or at least they had to set up a car with a dummy to convincingly crash. What you're seeing is heightened, but basically within the realm of reality.
Or take A Bridge Too Far. It's a bit of a mess! Make it CG and it'd be outright bad. But ho-lee-shit do they blow up a lot of stuff, like, you cannot even believe how much. And look at all those tanks and armored vehicles they got! And planes! And extras! Those are all 100% real! AND ALL THE KABOOMS! And it all looks better than CG, to boot. The spectacle of it (plus some solid performances) saves the movie. Make all the FX CG and it'd be crap.
Imagine a Jackie Chan movie with CG stunts. What is even the point. It'd be trash.
I highly recommend this 5-part essay series "NO CGI" is really just INVISIBLE CGI" https://www.youtube.com/watch?v=7ttG90raCNo (it starts with "Top Gun: Maverick").
Current-era CGI is insanely good. The problem is that it's used and abused everywhere, often with very little consideration for whether it's needed, or if there's time to do all the VFX shots etc.
This is just rose tinted nostalgia. You are remembering the things you loved which are much simpler and forgetting all the lemon shots and limitations of the day.
The movies and TV that can be made now without the limitations of the past are significantly different, from period movies to super hero movies and everything in between. Watch the 1970s superman or logan's run and see how they hold up.
The vast majority of CG you don't notice.
> Alien in 1979
I think this might be your nostalgia. The thing looks different in different scenes, and there's a scene that feels like it's a guy inside from the way it moves. So I disagree that Alien is peak special effects. (still peak over things. Peak ambience for sure)
This was the argument about Fury Road (mostly real) vs Furiosa (a lot of CGI.)
But only bad CGI is visible. I guarantee you have watched CGI footage and not noticed. At all.
The problem over the last decade or so hasn't been the technical limits of CGI, but studio unwillingness to spend enough on it to make it good.
And directors have also become less creative. You can find UK newsreels from the 50s on YouTube, and some of the direction and editing are superb - a beautiful mix of abstraction, framing, and narrative.
Most modern directors don't have that kind of visual literacy. The emphasis is more on spectacle and trying to bludgeon audiences into submission, not on tastefulness and visual craft.