Whatever the reason, people are in fact wigging out thinking this will be CG. I guess so many people justifiably jump to that cynical conclusion because of all the garbage that's in theaters now. It just goes to show why we need a Muppet movie now more than ever.
It's easy to be cynical, and I blame crappy third and fourth party studios for dumping us with bad kiddy films (not mentioning THAT one again for the hundredth time), and it doesn't do anything but drag the rep of GOOD studios down.
Somehow, the Smurfs movie is going to do a LOT of damage, and I hope the Muppet film doesn't fall into the lump of BAD "live action remake" movies like Yogi Bear, Underdog, Marmaduke (since kids all apparently know about 1970's comic strip characters that weren't even funny in their hey day), and all those other sassy hip jive tawkin' "re-imaginings" (how can things be re-imagined if no imagination is required to rip everyone off?) that just tick off the fan base, and fail to get an audience that's both young and cares who the characters are.
This movie was made by a genuine Muppet fan (one that didn't like the last batch of themed films, no less), and we wouldn't even have a Muppet movie without him. That's a point no one seems to want to come across. Then you look at the Smurfs movie and you get a company that bought the rights to a movie off of a company that no longer wanted to do one (and there's was better anyway), they came up with a lousy script, I'd swear, a week before shooting, and there's so little confidence for the film, they're dumping it sometime in August (might as well go directly to video)... and I swear it already did it's damage with the Fraggle movie, and I think that's one of the reasons it's not happening.