I think Jereth is either not a goblin, or a goblin with such powers to make himself look like Sarah's ideal and to therefore capture her heart. Bowie as the Goblin King certainly captured my heart! :X But aside from my swooning, that's a really cool reasoning as to why he's not all small and goblin-like. I've never thought of it that way. CGI would destroy the Labyrinth...it's the same deal with the dancing alien in the Star Wars film ROTJ in Jabba's Palace (Unless it was under the control of Peter Jackson's mob who did the effects for LOTR...just good enough to be realistic but not over the top) But otherwise it looks horrible and it takes away from what is supposed to be going on in the plot, focussing instead on computer effects.