The point is that you are able to focus on the emotions and expressions of the character you're watching rather than struggling against an urge to warn the others... to protect the children.
But that can happen after or before the valley, and I personally think they're still before it. It's closer to a cartoon or animated being like Wall-E than to a real human.
The Uncally valley has to do with causing "a response of revulsion among human observers" (http://en.wikipedia.org/wiki/Uncanny_valley). It's when the robot / fictional character feels real enough that it's not obvious it's a robot anymore, but weird enough that it looks like a real creepy human being.
The rendering being cartoon-like or the shading not being realistic has nothing to do with it.
How does it not have anything to do with it? To me, it's exactly the cartoon-like appearance that makes it feel unreal enough that it's obvious it's not an human.
It is very creepy to me and I happen to have a very hard time remember people's faces and recognizing them. I wonder if my brain is just worse than average at face processing, and that's why this becomes uncanny to me? Whereas to someone who has a better than average eye for faces, this is clearly a cartoon.
From the Wikipedia article you linked: "Avoiding a photorealistic texture can permit more leeway."
For me, this goes nowhere near the uncanny valley, for the reason icebraining points out. The coloring and visual tone of the whole piece says "cartoon" to me. It's a different aesthetic than, say, Tangled, but the effect is the same for me. Perhaps this is partly because, as a frequent gamer, that aesthetic is very familiar to me.
Yeah I actually didn't voice my opinion in my parent comment but I agree, this doesn't feel uncanny to me either. Whether something is uncanny or not is probably a subjective assessment.
But that can happen after or before the valley, and I personally think they're still before it. It's closer to a cartoon or animated being like Wall-E than to a real human.