Not everything is bleak. The ending sequence for Frieren season 2 was entirely hand drawn with colored pencils[0] and the new Ghost in the Shell (coming out next month) is also hand drawn[1]. [0] https://www.youtube.com/watch?v=FY4Bx2qtkRM [1] https://www.youtube.com/watch?v=nnRcKC4Rgsc
Frieren is animated by Madhouse, though, which I feel like is one of the last bastions of high-quality Japanese animation.
Not true. Madhouse isn't what it once was. Frieren had lots of freelancers.
Also, Kunihiko Hamada (whom worked on Frieren, is 1 of the lead animators, designers) left, citing disappointment.