Good question, Spanky.
I believe that CG has not hurt the film industry. James Cameron was the first director to really use CG in a film (The Abyss and then T2), BTW. What CG enabled a film like Spider-Man to do was make the film resemble, as close as possible, a comic book. Could not have been done without CG.
You have to really consider the skills of the director when it comes to CG and film. Now, we have the likes of Michael Bay, Simon West, Paul Anderson - these are guys who would NOT have been given a huge blockbuster project BEFORE CG. Then you have Jan DeBont, George Lucas. Granted, Jan DeBont was a Master of Cinematography before he became a director. But he and Lucas have, recently, relied too much on CG rather than on plain good old storytelling.
James Cameron: a man who can tell a good story and will use CG/FX as a way to "enhance" the story. And Peter Jackson and Sam Raimi will often opt for wild camera angles over CG/FX to enhance a shot.
Then we come to the virtuoso, the master: Steven Spielberg. Well, after Minority Report, I believe Spielberg is a definite technical wizard. Let me explain: Let's say you create a CG rock. Well, this CG rock will not reflect or absorb light like a real rock. So, if you were to place this CG rock in a live setting - it'll just look "out of place". So, you have to create a setting out of CG to place the rock in. Well, in Minority Report, the FX wonders, along with Spielberg and his wondrous Cinematographer, Januzs Kiminski were able to film scenes with CG elements IN live settings. Absolutely stunning. And few directors can pull it off. We'll be able to see if Peter Jackson and WETA studios can pull it off in The Two Towers. But we've seen glimpses of Spielbergs brilliance in Raiders of the Lost Ark and Jurassic Park. BUT, JAWS really captured it, IMO. Especially ONE scene that is really a great study on how to maintain a audience's interest in simple dialogue between characters.
*sigh* SO - it really depends on how CG is handled in a film and who is the handler (director). I think we'll be seeing some good stuff being done. How CG is used will be dependent on the film. Comic book-like films are gonna be heavy in CG, while other films will need CG to enhance the visual quality. And of course, the director and how good of a director he/she is.