Yahtzee, I'm sure you're going to be annoyed with me for doing this, but you summed up one of my major disappoints in the prequel Star Wars movies. Return of the Jedi had an awesome space battle in it, along with a great ground battle (I like Ewoks, sorry). So, with technology the way it is now, I was gitty with joy when the prequels were released. I spent many a day wondering how they would make space and ground battles look now.
Instead, like you said, there was too much. Too much debris, too many flashes, too many explosions. I couldn't follow any of it. And, as you also pointed out, because the technology was so costly, the scenes themselves were only two or three seconds or a blinding explosion. Such a let down. So yeah, this even applies to Star Wars, although it's not the only problem with it.