Sandy and I watched the show. I was on the laptop after a while, though, and just glanced up during the highlights. I watched both Hurt Locker and Avatar, and I thought it could go either way, depending on whether the voters this year were the big blockbuster type, or the small artsy crowd. Avatar is by far the greater cinematic achievement. Hurt Locker delivers a powerful story in a disturbingly realistic way. Up won in its categories, as it should be. I've seen it and the competition. I wouldn't have nominated The Wonderful Mr Fox in any category related to animation.
As for the actor awards, Christoph Waltz earned his without a doubt. I haven't seen Precious, nor do I intend to, so I don't know if More Nique, er, Mo'Nique deserved hers or not. I haven't seen Sandra Bullock's movie, so I don't know if she deserved her award more than Meryl Streep (who portrayed Julia Child perfectly). Jeff Bridges was due, and that's probably why he was picked. Haven't seen his movie, though, so my comment holds little water. Best Director and Best Movie went to Hurt Locker, which I can't argue with. The competition wasn't all that strong, and that includes Avatar in such lofty categories.
I didn't think Up in the Air deserved any Oscars, and I can't understand why it got a Best Actress nomination. The actress didn't do anything in this movie to deserve it.
That's all I can think of for the moment.