That is a Bingo! [/inglorious basterds]
Haha at great quote.
I think "Up" should have been a runaway winner, but there's a skittishness about giving certain types of movies Best Picture. I think people are afraid of some sort of "they gave it to a cartoon???" backlash. But you know, a great movie is a great movie, regardless of how it's presented.
I'm racking my brains for cartoons/animated movies that I think are Oscar-worthy. Here's what I came up with:
Sleeping Beauty - a classic.
The Last Unicorn - very underrated. The book is even better.
The Fox and the Hound - have you seen a grown man cry? Well, okay, I was 5 when I first saw it.
Kiki's Delivery Service - probably my favourite Miyazaki.
Howl's Moving Castle - another one.
Wallace and Gromit series (not the Hollywood film, which was blecch) - too short for best picture rules, though.
A Scanner Darkly - technically rotoscoped, but so was a lot of Rankin and Bass animation. I say it still counts.
The Nightmare Before Christmas
5 cm per second - truly moving.
The Girl Who Leapt Through Time
Perfect Blue - how could I forget Satoshi Kon?
Paprika - more Satoshi goodness.
Angel's Egg - trippy.
Coraline - the book was better, though Dakota nailed the voice.
The Iron Giant
Summer Wars - ending a bit too cliched and melodramatic.
Garden of Sinners series - overall great, but several unremarkable movies kept it off the A-list.
I'm as surprised as anyone that no 3D rendered movies made my list. I liked Monsters vs Aliens, but it was very weak in the middle. And Cloudy With a Chance of Meatballs was fun but not filling. Of course, many of those movies would have been disqualified from Best Picture because of nationality, but I'm judging by sheer quality, not locality. Japan may be a bit overrepresented, but they have a large market and an industry that is not afraid to target older and more sophisticated audiences. We're still a long way from that in Western Animation (Scanner Darkly and Heavy Metal series aside).
Wind, Sand and Stars.