Hi, cinema nerd here. Both are hard work, and both are still art. What I think it really comes down to is the art style, and the actors' response and training.

CG-effects tend to force actors to imagine two very different things when they interact, leading them to ignore or otherwise misinterpret things the audience will see. While for some, depending on their training, this can be fairly natural (stage players have to interact with imaginary scenery all the time), film actors tend to expect costars and sets they can see and touch, and this does affect the way they act in small ways.

What CG really helps with is it alleviates the burden on suited actors. Wearing a big bulky monster costume is a thing of the past for many lucky stunt actors, now that complex and difficult scenes that might require multiple takes can be done by a dude in a leotard and stilts instead of 80 lbs of yak hair.

I will say, I am absolutely thrilled to see movies like the Mandalorian and Project Hail Mary making puppetry mainstream again. I love love love puppets.