These are students playing with new technology to produce animated characters that move in unintuitive ways, resulting in something actually quite interesting, yet unnaturally creepy (which was intentional).
Miyazaki dismissed it 'an insult to life itself'. I can't imagine the disappointment those students must have felt.
If you suspect I'm writing in a way to try to make you feel (or not) a certain way, or to avoid breaking some taboo, or to follow some dogma, then you have no real reason to care about what I ultimately say, because you have no real reason to think its "authentic." By contrast when he views something overtly as "an insult to life itself" it's an incredibly insightful view on his perspective of the world. You would have lost so much in "translation" had he crafted his message in a less sincere way.
I also think this is why there will be minimal to zero market for much "AI" content. Content is not just content. It's a reflection of ourselves. Think about how much you can, probably accurately, infer about me, my views, and more - based on these 3 paragraphs. When this comes from a chatbot, any reflections you might see would be as real as the shapes you might see in the clouds.
My dad always said "computers are very fast idiots". They will probably never be Mozarts, but they can and will be Salieris; and most of the world would be extremely happy to have a personal Salieri - in fact, we'll probably be happier like that, considering how Mozarts can be very problematic from so many perspectives.
Last weekend I watched part of an episode and there was a scene where they walked towards "Place de la Pointillisme" [0]. The effect is clearly CGI and you can see how Homer and Marge are actually animated 3D models, so effectively all the "newer" shows (it was aired May 8, 2016) are computer animations with a very flat cel shader. Some argue that newer episodes aren't as good as old ones, but I'm not sure if this could be attributed to them not being hand drawn anymore. In any case, one could apply an XKCD-shader to make the lines a bit more human if the look doesn't appeal.
The Miyazaki video, I get it why he says what he says, but it's an issue with the students targeting the wrong audience. I could see their horrible graphics being a part of a horror movie or game, but that is a completely different world than Miyazaki's.
[0] https://simpsonswiki.com/wiki/File:Pointillism_Marge_and_Hom...
I found the video: https://www.youtube.com/watch?v=nf6dp4k-gmc&t=167s
When my favorite podcast ended it felt like I lost touch with a group of friends, this ain't going to have that sort of impact on me. Pass.