Before CGI, aka 3D animation and modeling, special effects meant practical effects: building little spaceships out of plywood, putting the camera really close to them to make them seem huge, and then setting them on fire. Or a giant, malfunctioning, mechanical shark. Filmmakers like Christopher Nolan still favor practical effects over CGI, because they give the actors something real to react to.
But 3D and CGI are in every movie, because they give filmmakers the ability to depict just about anything, and they've advanced to a degree where they look incredible. So they're not going anywhere.
But I think practical effects are going to come back in a huge way. Today, you don't have to build the little spaceship out of plywood. You can fill it full of tiny servos and sensors. You can make little walking tanks. You can do almost anything.
Animatronic effects and simple machines have been a part of filmmaking for a long time, but that whole process is probably about to become a lot more effective. So there's probably going to be a little practical effects renaissance in about 5 to 10 years, which will make movies feel more real again. It's probably starting already.