Yeah.... I think fairy tales as a whole just don't translate well into live action, because they're short and simple at the core, made with the very narrow and very specified point to get across, and everything else is simplified to build around that core. With animation, 2D or 3D, it very nicely grounds the viewer in fantasy.

With live-action, the viewer is much more inclined to proceed from the baseline POV of reality. And mixing realism into fairy tales is just...lots of fridge horror, as the story just isn't designed for it. You need a lot of world building (such as the likes of Narnia, LOTR, and other novel series) to make a fantasy story suitable for live action.