I don't really know what you're complaining about. There have been advancements in animation.
Like you said, there's motion capture. There's animation interpolation to get two unrelated animations to blend in to one another. There's nothing stopping hand-made animation from being created.
Then there's procedural animation that works fine and there are learning algorithms that can teach skeletons and models of varying levels of craziness to walk and run and jump that should be applicable to games in a few years.
Not to mention ragdolls and shit with joints that prevent goofy hyper extension.
Also, physical models that are capable of latching on to other skeletons and manipulating them, like in one of the Source engine updates (HL2E1, I think?) and the tech shown off by LucasArts way back when that had intelligent skeletal animations where bodies would try to prevent themselves falling by grabbing at whatever they could and shit like that.
Animation has literally made advances in leaps in bounds.