Thanks everyone for the clarification and alleviating my fears that the filmmakers might just want to make Goji CGI to make it appear more dinosaur like in the present sense. As for Transformers '07, they did use motion capture, and it was a good thing too. It made all of those convoluted parts move together like a single body. One scene that comes to mind is where Starscream is about to attack and Iron Hide and Bumblebee lift up the truck to try to shield themselves. I may not like Ironhide's redesign (looks like somebody was going for a humanoid Black Lion from Voltron, not a a red Autobot) or demeanor, but I did enjoy how well he was animated.
Also, speaking of the importance of the inability of smoke and water to miniaturize.
I just watched GMK again, the scene were the military engages Goji and gets blown away.
The inability of smoke to miniaturize did not disrupt my suspension of disbelief as Godzilla crashed against a building and pieces of model buildings were shown falling on the soldiers. Nor when Godzilla retaliated after having the slightly too shiny CGI drill rockets explode on his hide, his CGI breath weapon exploding the mobile rocket pod model in the street. The awesome film work just kept going with the digitally inserted tiny soldiers being thrown into the air as the model trucks seperating them from Godzilla exploded as the beam passed over them. And I certainly did not see a problem with the water as one of the two battleships offshore was then hit by the ray and promptly exploded. THAT is how you do Godzilla with suitmation.
And before people rattle off how inferior this method of effects is, consider LOTR, a big budget movie that used the same methods to make the hobbits look small at the Prancing Pony, and to make Gandalf tower over Bilbo, and to make the models of the computer generated landscape and buildings And now consider how bad the animation was when they tried to have a fully CGI Legolas jump on and shoot the cave troll. This is an example of bad CGI in a modern big budget film. Thankfully the rest of the CGI in the film was top notch, but it shows how unreliable CGI can turn out, regardless of how modern or how big the budget is. Also, if they want to make Godzilla more feral and less human, then they should motion capture or rotoscope actual animans doing all the leaps, running and other things that using humans as reference can pull off.