I saw it today. It was not as bad as the dismal reviews would have us believe. Don't expect Pixar-level animation, but it's not bad.
Good points: The fantasy world in which the film takes place is imaginatively design, with hordes of truly bizarre critters. The voice cast is very good, playing it straight when it needs to be straight, and letting some nice bits of character humor to slip in to break the tension. The action scenes are well done. The moral to the story does slop over into preachiness. The film does not talk down to its audience; without being overly graphic, there are some implications of harsh violence.
Bad points: The story is very familiar and a little cliched, two nations with a tense stalemate that is breaking down from prejudice on both sides, with a little help from evil opportunists. If you've seen the DTV Dragons: Fire and Ice, this film is almost a remake of that one. Most of the characters are pretty transparent and one-dimensional (with the exception of one heroic character who ruins his career with a gambling problem -- that was something you don't often see in a kids' film). The animation is inconsistent; well-done in some places, choppy in other.
I would recommend this film with the caution that you will not be watching a classic. Just an ambitious effort that occasionally succeeds and entertains.