There are no greater magicians in the modern age than the storytellers of Pixar, but they should not carry it alone. No-one at Pixar would claim that digital animation is the only way. They all fell in love with hand-drawn and stop motion work as children, and those mediums deserve their place still. They too can delight the child.
The formula for Disney used to be so simple: take one porn-star proportioned, doe-eyed virgin on the brink of adulthood, screw on a magical affliction, support on brackets of dysfunctional and/or single parent family, furnish with evil hags and dashing Princes heavy on bravery and light on personality, decorate with singing balls of fluff. It was like the IKEA of children's films: bright, simple, and formulaic. But feminism and animation went and ruined it all- society grew tired of damsels in distress- the 50s housewife that Disney princesses were undoubtedly modelled on seemed ridiculously outdated, insulting even. Disney's unruly child, Pixar, introduced the world to boys toys and morals for a modern audience in Toy Story, out-stripping it's parent so quickly that less than 20 years on, it's practically gobbled all of Disney up.