I think he felt offended because the young guys probably think they made a good imitation of some dark slimy creatures featuring in his movies. So he makes a point of telling them that those creatures move that way because they are suffering whereas the animations they showed him are random
I'm not sure it was that they were random (I doubt he understands RL at that level) he was more offended because as he said "it was in insult to life" and an insult to his disabled friend who has to live with the pain of disability. Putting myself into his mindset or the mindset of my father who is the same age I guess I would probably see it as some kind of cruel experiment as well. I mean, obviously those young guys suffered some embarassment there in that exchange (just look at their faces) as they revere Miyazaki, but trying to put myself in the mindset of someone who is from the era he is from, what he said makes some sense. His last statement that we humans are losing faith in ourselves is poignant.
I mean if you showed me that saying that in a couple thousand generations it will beat a team of animators or Mocap performers at a walk cycle, I'd tell you to get lost and roll the dice on my animators. Miyazaki has no mercy.
He also called his son's first film crap, again I'd be less blunt about it but I have to agree. I saw Earwig and the Witch. Holy crap its bad.
