It regards James Cameron's small art film, and it's a good one.
"Is it animation? Is it a new category? ... I don't know where it fits. I will tell you this, animators have to work very, very hard with the motion-capture data. After the performance is captured, it's not just plugged into the computer which spits out big blue people. It's a hybrid."
Just like Out of the Inkwell and Gulliver's Travels (the Fleischer edition) and Don Bluth's later work. There was lots of live-action emoting in the mix with all of them, but the final results needed animators sitting and desks. Lots and lots of animators. Likewise Avatar.
So to describe it as pure flesh-and-blood actor's performance is more than a little wrong.