I don't have a problem with seeing fantastical trappings. I don't always have a problem even with the unconvincing trappings. But I also think it's cool that Moore went a different route. Like Chekov's Phaser said: do away with the distractions and get to the story you want to tell.
But if the setting of an SF story is just a "distraction," then you're doing it wrong. In speculative fiction, the world itself should be a generator of story. The parameters and nature of the world should shape how the characters act and interact. If the setting is just decoration on an ordinary story that could take place on our world, then the writer is failing to take advantage of the opportunities the medium provides to explore human nature in ways that couldn't be done in an ordinary setting.
This is something that the Galactica/Caprica franchise did do at its best. The most interesting parts of Caprica's world were the alien parts -- the rise of artificial intelligence, the virtual world, the exotic religion and group marriages -- things that weren't just arbitrarily different, but different in a way that catalyzed story and shaped character interactions and allowed exploring thematic questions of human nature that you couldn't address in an ordinary crime drama, say.
I once read a great editorial from Stanley Schmidt back while he was still the editor of Analog, refuting the attitude among many writers that serving the characters well required a cavalier approach to the setting, science, and worldbuilding, or vice-versa. As he put it, the setting is essentially a character in its own right, because its nature and its rules affect the way the characters think and act just as much as they affect each other. And so the setting and the characters should be treated with equal care. It shouldn't be seen as a zero-sum choice between the two.
Not to mention that different things can be distracting in different contexts. For me, it was constantly distracting that these characters who were supposedly from an alien world were going around wearing present-day clothes and using Western names and so forth. And when they started using source music from our world -- that "All Along the Watchtower" thing that actually became a key plot point -- it just pulled me out of the narrative altogether because it made no sense. That is a distraction. The trappings of an imaginary world aren't distracting at all as long as they're integrated smoothly into the whole and feel like they belong. But incongruities and things that undermine suspension of disbelief are very distracting.