In a way makes even less sense. I wonder how long in the planning the 1996 revamp actually was - presumably wasn't on the cards when Zoe began in January, though then again if that was the case makes little sense they didn't freshen up the titles then.
Talking of titles after the discussions in the Carlton thread I'm assuming the 1997 titles were 100% real.
Yes, literally breakfast items on wires (apart from the tea bags), shot against a blue screen and mostly animated using a vision mixer. The tea bags were entirely animated using a vision mixer.