Plot hole? It's more of an enigma than a plot hole; there is a consistency, you just have to be willing to twist your brain into a pretzel shape to understand it. And as I happen to enjoy doing just that...
Definitely cell shaded animation, at least in style. If they managed to pull off 3D animation that LOOKED LIKE cell shaded animation (they're getting remarkably close these days), that would be okay.
One thing that would be nice is if they could reduce the stiffness of the character models. Not entirely, mind you; I'm well aware they were going for a "living dolls" kind of look. But just give them a more lifelike feel.
As to live action, I'm convinced (okay, not really, but I'm just saying...) there's someone out there pulling the strings in an effort to make these live action adaptations as terrible as they can so they can laugh at the people who actually watch them, Ellsworth Toohey style.