Yes. But I'm impressed with many algorithms. I 100% agree with you about the uncanny valley feel. My take is as computers get better at imitating reality humans will get better and detecting this imitation.
I've noticed that there is a valley with AI as well. I don't have a large enough sample size but it seems to me that younger people who spend a lot of time looking at fake worlds as they game are impressed. It is much better than the worlds in games I've seen. The other group are older folks. Just as you mention, when I go back and watch old movies that had CG I can spot it, I suspect these young people's brains will learn to spot this stuff. That's not to mention using computers to detect fake video.
I've been asked many times by older folks if I'm concerned about "AI". I'm not. No more than I'm concerned about the Internet. It is an evolution not a revolution. That's my feeling right now at least. Sure there has been a jump in quality but there has also been a ton of hype and fear that comes from the desire to pump stock prices and government power.