Yes, many animated movies are now being redone in "live action," with photorealistic CGI. In the case of "How to Train Your Dragon, I kind of wondered what was the point, since the animated version was relatively recent anyway.
Overall, the translation does hold up well. Using live actors does allow for more subtle nuance in what is, after all, an emotionally complicated story.
There is, however, one caveat. The use of real landscapes and CGI "dragons" does, often, strain credibility with the physics of various scenes, and sometimes only serves to point out the problems with scale and distance that the original, somewhat cruder animation, hides.