When it comes to this whole debate of physical vs digital sets, it needs to be separated into different categories thrill vs family. When it comes to thrill rides you aren't going to have large detailed sets with animatronics. These rides need speed and sudden movement or at least the illusion. When it comes to achieving this you either have to use screens or you end up in a large dark building. My point being if you wanted a all physical ride you would end up with a ride that doesn't feel very fast and frantic like Mario kart franchise does. A large animatronic would cause issues with the sense of speed, as to invest in such an animatronic would be costly so it would have to be the focus of that portion of the ride and in turn would break the illusion as you would notice that you are not approaching that character at a high rate of speed. To make thrill rides with lots of physical attributes is difficult and the only way can think of it being done well would be with a lot of nature theming areas (hagrid - forest, big thunder/everst - mountain, CARS - canyon).