Thoughts on puppetmation?

I just started a new TV show called Thunderbolt Fantasy, a Taiwanese/Japanese wuxia fantasy story with puppets. I quite like it after two episodes, but I'm not here to talk specifically about the show. I want to bring up puppetmation and its place in the industry. I can only think of one other recent attempt at puppetmation, and that was Netflix's excellent - although sadly short-lived - fantasy work The Dark Crystal: Age of Resistance. Both AoR and TF utilize a mixture of CGI and puppetry for the action scenes, which makes the world come alive and look cool and epic in a way that is rarely achieved in live action. By mixing practical effects and digital effects, we can get fully realized worlds, and I am intrigued by the possibilities of the medium. The CGI in both shows would look off in live action, but the puppetry already requires a suspension of disbelief that allows the CGI to enhance the experience.

I haven't given any real thought into this, I just want to open this up for discussion. Is there a place for puppetmation in today's cinematic landscape? Or would audiences reject stories like these out of hand?