You know, I have to disagree with that.
I am admittedly perhaps the only person I've encountered that enjoyed modeled planets in Cardinal Spear (FS1/FS Port campaign). And furthermore, I will explain why:
Moving in simulated time and space, it is easy to rationalize that your relative position with respect to another large celestial body might be quite minimal. And skyboxes are certainly prettier than a modeled planet in FSO. BUT, the truth is, in fact, that you are indeed moving. Cardinal Spear made you feel much less lethargic when flying about in your very slow high-powered starfighter by, even though the sizes of the planets were not to scale, ensuring that everything you moved in relation to changed its apparent size and position. Of course, this was only possible because the planets were modeled!
The end result is this - until someone figures out how to make modeled planets look really good in FSO, people will argue against them as they are not as pretty and will possibly break that sense of precieved realism to some. Alternately, they add a depth of realism that skyboxes do not have, as now the environment in which the player exists is also now dynamic. Personally, I think the sense of motion that modeled planets can deliver to the player makes them well worth the effort if the missions in which they exist are properly designed, and the scales of the planets are properly managed.
At standard FS2 speeds, planets are far too large to successfully navigate around.
At standard FS2 scales, realistic planets will need to use several very high-resolution textures in order to look good.
Without additional code support, you will still be able to ram the planet and bounce off it.
At the sizes you would have to use in order to make a planet realistic, you would pretty soon run into floating point inaccuracy issues.
Now, the point you raise about animations is a good one, but even that can be done with a few tricks as part of a skybox.
It was either StarLancer or FreeLancer that showed everything that can be done wrong when planets are actual 3D models.
I should note that to every program that did something well or not, there has or will be a counter-example. In the case of Freelancer or Starlancer, well, that was an older game with reduced capabilities as compared to now. I should note that in vanilla FS, or FS2, things just look
terrible. In fact, I would argue that many, many games of the late 90's or early 2000's which rely on texture maps for detail often look really bad from a combination of poorly-made, low-poly models and low resolution textures. Under those constraints, it's really hard to make a good looking curved shape with a lot of detail. I'd also theorize that it's where the majority of box ships came from, where artists were trying to make the best of design whilst limited by hardware (looking at YOU, Wing Commander...). In any sense, modeled planets are not a bad option for every program under the sun, but probably more so FSO.
If one tries to make modeled planets in FSO, however, I'd again point to Cardinal Spear for a job well done. And you're right, vanilla FSO speeds are ludicrously low, and far too low for inter- or intrasteller navigation. Your comment on textures is probably also very much valid. In fact, every point you've made is vaild. And so, why might I still argue or promote my views?
First, I do not think the average user ever bothers to think about how fast they're actually going, or that FS is probably the slowest space sim/arcade sim out there (or at least the slowest I've ever seen). But they do think they should be going fast, and Cardinal spear did that with visual trickery. Planets were not full-size. They were not at a realistic range from the player. Rather, they were positioned and proportioned such that they made the player feel like they were at least moving in relation to the planet, and were placed at a range such that the player was unlikely to collide with them. Mission design, not models alone, pulled the effect off. As unto the speed argument, that has itself been argued enough, and is not needed in here.
As for appearance... I have to wonder... is the draw order (with respect to model transparencies), which FSO is capable of delivering, enough such that you could put an atmospheric submodel on a planet, and not have any transparency problems? I think the only downside it that you'd only (as of this time) be able to draw one atmospheric layer...