Up has become the second animated movie nominated for picture of the year. That is an amazing compliment in itself. Sadly that will be all Up gets.
The odds of an animated film winning picture of the year are insane. It doesn't matter if Up is the best film, it will not win. The Oscar will go to another film that most likely has been seen by a fraction of the people. I don't think Up or Avatar stand a chance.
Does up deserve it? Yes. The first fifteen minutes of that movie are some of the best in any movie ever. The fact that it tells the story of a married couples life in the span of montage with no dialogue is amazing. It doesn't just tell the story it moves you. Most people were move to tears during that sceen.
From the start Up makes you care about the characters. From there it doesn't stop. The movie teaches a lesson without anyone knowing it. People can change and find friends where they never thought possible.
The other movies this year don't match what Up did but they are not animated so one of them will win. Doesn't matter if it's right or wrong. That's just how it is.