I haven't seen Hurt Locker, but plan on doing so, despite the apparent inaccuracies as far as some Vets are concerned (other Vets have said it's well done).
I really enjoyed Avatar, the 3D version is a visual feast and absolutely spectacular. Sure, the story line is not original and is totally predictable, but visually it was amazing, regardless of whether it was "real people" or CGI.
Like it or not, the Oscars are very political - any movie about a war that the US is currently fighting will always go close to winning, because of sentiment. Same story with the film that won it's category - the one about a dolphin slaughter in Japan - the anti whaling sentiment is running high at the moment, so was a great opportunity to stick it to the Japanese.