If Tangled (2010) was starred by real actors and actresses, what would have been the problem?
Would the effect be different if Tangled was acted by real actors/actresses?
How do film-makers decide which story will be produced as an animated film?
Those Films Make Money
Tangled earned $559 million word wide from box office sales, not including merchandising profits. It cost $260 million to make. So doubling your investment isn't bad.
Red Riding Hood (2011) was a live action story based upon a fairy tale. It cost much less $42 million, but only did $89 million. That would be counted as a success, except to a major studio $47 million in profit wouldn't cover their laundry bill.
Animation is a stylized format that has a broader appeal then traditional film. So more people will watch it.