Toy Story 3 (2010) connects to reality more than other animation because of how it is created. Computer animation attempts to come closer to reality than any other form of animation. The movement of the characters within the world is based on motion capture, a technique grounded in the movements of a real person. The human characters are all allowed to move as real humans. Each individual toy moves the way that they each seem to be designed to move. The advances in technology create more expressive facial expressions on the animated character.
Computer generated images in film are a manipulation of reality itself.
Why use animation? Well generally the answer would be to put things on the screen that don't exist in reality. Viewers know that there is no possible way that toys could come to life. Our knowledge of the impossible is exactly why the filmmaker would attempt to recreate reality. If animators cared little about putting their characters and world into a realistic context, the narrative and character development would be lost due to a focus on unrealistic setting. The need for realism in animation coincides with the need for viewer acceptance of the animated world.