First, anyone saying that all effects must be practical is just as head scratching as saying that all effects must be CG. Both are highly limiting. There are things CG does very well, such as wire removal. There are ways to obfuscate wires, but there are plenty of older movies where you can see wires being used.

A technology that blurs the line between the two is the volume, made famous by Mandolorian. The environment is rendered in CG to large LED panels, but this provides practical visuals for the actor, and interactive lighting to ensure the actors blend into the scene correctly (as opposed to green screen). No postproduction work is needed. So is this practical because it happens on set and everyone can see it, and no post is required? Or is it CG because it was ultimately generated by a computer?

But if you're looking for films that minimize digital effects, Predestination is a recent scifi movie that fits your bill. There are some effects, but it's just for setting the location (set in New York, but shot in Australia). The sci-fi elements such as time travel are actually done with just simple cuts, rather than any flashy CG lightning, etc.

And in terms of how will it make people feel to see real effects again? Look at Top Gun Maverick. Yes, many of the shots feature CG planes, but you can see the reality of the actors flying low and fast over terrain, the rotating lighting as the plane banks, the g-forces, etc. People loved the shit out of it because it did make the film feel more immersive.