Its all relative, Pete. You know that.
There's two ways of looking at this. The first is what it means to the company, in the big picture.
Disney making a nice little movie that does nice box office is nice. But we are talking about the "giants" of the industry butting heads here. Nice little successes don't give the Disney "synergy" machine the fuel it needs.
Sure, there will probably be a dtv sequel or two, maybe a short run syndicated animated tv show. CL will be at the meet and greets every so often in the parks.
But that's a far cry from what Disney wants/needs, and what films like The Lion King, Mermaid, Aladdin, Toy Story, Monsters, etc. can do for that machine. Sure, if this were the low end of what Disney's films were doing, it might be fine. Like you said, not every film can be The Lion King.
But this is pretty much the high point as far as Disney's more recent efforts go, while others are doing better.
The film is what it is, and for those who like it, they will be free to do so forever when it comes out on DVD. Its not like it will be shoved under the carpet never to be seen again. But like I said, its all relative, and its hard to look at this and say that this is anywhere near what the company would have called a success going in, given the goals they set for it.
But that of course brings us back to what is probably the crux of the entire problem. Is the system Disney is employing to create its animated films even capable of consistently creating top notch product? Are the goals it sets not just realistic, but conducive to creating the best films in the industry?
Certainly its not too much to ask for an animated film studio with the experience and resources Disney has to produce films that succeed at the highest levels. But maybe its as simple as some have said... If you set out to make a film that will show your rivals what you can do, and gross at least $200 million, your chances of doing just that are much less than if you simply set out to tell a great story.
The second way of looking at it is related to the questions you asked:
I find it so odd that a little film like CL...will not be judged on its merit... How do the guys who made CL feel? Are they somehow failures because CL didn't do Nemo numbers and let Disney down?
Again, relative. As far as the public is concerned, they have spoken for the most part. As a whole, they don't hate it, and they don't love it. They judge it for what it is, as you say they should. Its ok. Nothing more, nothing less.
How do the creators feel? Good question. Probably depends on what their goals were, right? Did they set out to tell a great story that they hoped the public would love? Or did they set out to achieve the same goals set forth by the company?