Well, I'm surprised and not surprised Avatar didn't win Best Picture. I am surprised because, clearly, it's a monumental film that will change the industry. I'm not surprised because the Academy is extremely worried that movies like Avatar will put their actors out of work.
However, in the spirit of Lord of the Rings, it's not a big surprise either. Lord of the Rings: The Fellowship of the Ring should have won its year, but it didn't because the Academy knew it would be a trilogy. They were waiting to award it in the final film, which they did. Cameron has already announced that Avatar is a trilogy, so he may have shot himself in the foot there. Then again, Cameron doesn't care about awards. He makes movies to make movies.
I've seen The Hurt Locker, and I've seen Avatar. I've seen most of the movies in that category. Of the ones I've seen, The Hurt Locker was probably my least favorite. Up is a much better film. Precious is a much better film. Avatar is a much, much better film. The Hurt Locker was this year's Slumdog Millionaire. It's really that simple.