I can’t really comment on the Katzenberg discussion since this is the first I’m reading about it. It is really interesting!
Anyway, Here are my views on the competeting studios and where they stand in relation to Pixar. I do believe Pixar is considered the Gold Standard in animation nowdays. For example many people I know compared HTTYD to Pixar in terms of qualiy.
DreamWorks: This is slightly unrelated but after Prince of Egypt I thought that DreamWorks would be be the next disney with how well they did that film. But then the rest of their 2D features really weren’t much to speak about. (Although I haven’t seen Road to El Dorado)
Anyway I think DreamWorks definately has the POTENTIONAL to become Pixar quality. They’ve produced films like Over the Hedge and Kung Fu Panda which were good but not quite up there, and How To Train Your Dragon which was excellent and Pixar level in my opinion. (I am not counting Wallace and Gromit or Chicken Run since they were made with another studio) But spaced in between them are these medicore movies (IMO anyway) such as Madagascar, The Shrek Sequels, Shark Tale, etc.
Blue Sky I think is still a few steps back. They rely to much on the Ice Age series and it reminds me alot of Dreamworks and Shrek. Although Horton Hears A Who was very good and I have very high hopes for Rio, I still see them as a few steps back.
I know Disney is related to Pixar and doesn’t try to compete with their films, but I am going to anylyze their indiviual CGI animated films also. I think Disney is between DreamWorks and Blue Sky in terms of quality. I think they have stepped in up in recent years after a lackluster begining of their CGI run.
I also think Illumination has potentional, but they only have one film out so its really hard to say. Other studios such as Nickelodeon and Sony aren’t really worth comparing yet also.