I'm sure others can elucidate, but there are indications he didn't like Disney's style of animation, for one thing. When discussing proposed illustrations of a German edition of
The Hobbit, he criticized them as being
Quote:
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....too 'Disnified' for my taste: Bilbo with a dribbling nose, and Gandalf as a figure of vulgar fun rather than the Odinic wanderer that I think of...
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Letters # 107
He seems to think "Disnification' to be a debasement of his work. Oddly, in my opinion, Peter Jackson could be guilty of similar sins.
In
Letters # 234 he said the story of the Pied Piper was a "terrible presage of the most vulgar elements in Disney".
Vulgar has many meanings, but the two I think most likely to be relevant are:
1. crude; coarse; unrefined: a
vulgar peasant, and
2. current; popular; common: a
vulgar success; vulgar beliefs.
So he seems to have thought Disney an embodiment of crudeness and the "modern" fairy-tale he had no time for.