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Cartoons are entertaining, but why would someone watch them instead of real people on TV?
If I meet a person as funny as Bugs Bunny, I will stop watching cartoons. I know that person. The one that draws the Bunny! Well, maybe I know him, but most of the kids don't, and that's why he draws Bugs Bunny, so that all the kids could laught, not just those who know him personally. I think it's just cultural bias. Animation gives you a lot more freedom.
I like sci-fi, but when you film something like that for TV or a live-action movie, you generally end up with "aliens" that are essentially humans with growths on their forheads. In animation, I could make a bug, a tyranosaur, just about anything I want.
It also allows for better "effects". Once again, the only limit is my mind. The shot costs the same -- it's just ink and cellose.
Also, you don't need to pay famous actors millions of dollars. Then again, you don't need famous actors for movies either, there are enough good and not so well known actors who will work for normal salary. That too. But for most movies people seem to expect stars. It might work with unknowns to save money -- voice actors generally work for peanuts compared to the regular TV actors. But one thing that's great about animation is that you can ignore the limitations of the budget and materials at hand. It costs no more to draw a weird bug than a dog. You don't have to worry about "how" to do the effects -- if you can draw it on paper, it exists. right, but my main thought is the effects and the sheer creativity. There's an anime called "Planetes" that's a hard sci-fi. they can do something that no "live" show can do -- have a character float about the cabin for the entire show. To do that for a "live action" show would cost millions. To animate that scene costs no more than drawing the same characters in Central park. Real life is entertaining, I suppose, but why would you live when you can watch cartoons?
Dreams are entertaining, but why would anyone dream when they can eat bacon?
You have framed a question of taste as some kind of mutually exclusive ultimatum.