I guess I also don't equate special effects/animation/CG with video quality.[/quote
I don't either. Several of the known finalists used little to no special effects or animation. On the flip side, MANY people used the standard pixie dust or "snap" transformation special effects and didn't make it. It's all about originality and creativity, regardless of special effects.
But it's very clear that a stellar video is what's expected for any future job openings/contests of this nature from Disney and that applicants should be prepared to spend the time, energy and potentially funds to make it professionally produced.
That I will definitely agree with. If it's a video contest, you should have a high quality video in the same way that if it's an essay contest, you should be a great writer or if it's a singing contest you need to be able to sing well.
It appears more that the video was the criterion that mattered most.
That's true and it was pretty clear to me that it was the case. Look at this page:
http://www.dreamcmo.com/guidelines.php
It makes no mention of the written portion but tells you very clearly how they'd be judging the videos.