Maybe to you. While Avatar is quite advanced over past motion capture characters, there is still no mistaking that they are animated. And they have features that are exaggerated. Cartoonish? That's just semantics. Do they have to appear cartoonish (IE: like Elmer Fudd) for the animation to be considered a cartoon? I say no. Animation=Cartoon.
Motion capture=animation. Period. Animated characters have never been eligible for acting oscar® contention.
Yes, MC introduces an interesting conundrum. I have no idea how you determine where the line is for an actor getting a nomination if the character they portray is animated.
Well, I'm gonna disagree, there isn't a single acting performance in Avatar (animated or otherwise) that deserves a nomination, so we don't have to worry about it. Yet.
I suspect most actors don't like the idea of animated characters getting oscar® noms, whether they are MC or not.
I also think that your " you don't piss off your #1 money maker." comment, as it applies to acting nominations doesn't hold water. While this is true for most of the other major oscar® categories, the acting oscars® usually have nothing to do with box office. A look at nominations of the past will bear this out.
And to anyone that finds the writing in Avatar to be good, I direct you to this hilarious gem I found on the internets:
http://www.designshed.com/samplestuff/pocatar.jpg