Wasn't this level of CGI around for Gladiator when they had to create Oliver Stone's last few scenes when he prematurely died? I couldn't pin point when they used a CGI Stone.
It's mostly for videogames (interactive entertainment) and movies that would be too dangerous or generally difficult for real actors to perform in. Beowulf is one of the first movies that does something like this. Angelina Jolie is completely cgi, and does things the human version couldn't do. I think this technology is great. A developer's imagination is the only limit (besides budget lol).