I'm working with a project for a kiddie Museum (or rather the kids department of a museum), and we're trying to make an animation corner for the kids.
They were originally suggesting a drawn and/or photographed stop-motion path, but after getting the 1500 (or 750) imgs pr minute (PAL) and doing some initial testing they have landed on an alternate solution.
We scan sets and objects and divide them into multilayered psd's from existing drawn material, add a song (the museum is in memorandum of a famous norwegian children-songwriter) and pre-produce the set and figures in Motion.
For the next test we'll use Motion, but the systemrequirements for Motion are far above what the museum has access to. It could have been a route to buy the new iMac and Motion standalone, but as that isn't an existing product, that path is closed. Ideally we would use a G4 lamp-pole iMac or an iBook.
It is not a requirement that the result is upscalable to HD or uncompressed. It's just the intention to let the kids play their way to a result with familiar music and characters.