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It is rumored Ian McKellen suffered a nervous breakdown on the set of the Hobbit trilogy because of all the CGI stuff. Keep in mind in his case he didn't even face the other actors in many scenes !
As for the rest, well, as long as tax credits will be given to CGI industry, and as long as the dollar stays a weak currency wrt to other parts of the world, use of real locations will be sparse I think alas.