This campy little masterpiece from 1981 is, as many reviews have already pointed-out, just a whole lot of fun, particularly to audiences who were young at the time when the film was originally released.
True, modern computer graphics are more sophisticated in their animation and compositing alongside real footage, but they lack the texture and feel of the older stop-motion animation models. Today the look of this film is somewhat "camp", but that is a positive feature, not a negative one. Somehow the old-fashioned techniques work when used in a mythological setting of a civilization that is so ancient. And they hold-up better than some critics would admit.
It's a shame that the real climax of this film (and the best part of the story) is the confrontation with Medusa, which happens about three-quarters of the way through the movie. The end battle with the Kraken pales in comparison to Perseus's killing of the serpent headed Medusa. With her serpent headed bows and the hissing rattle of her tail; the eery score, and the tenseness of the situation - this is a wonderfully filmed segment!
True, this may not be an acedemic interpretation of Greek mythology per/se, but it is highly entertaining, and never claims to be anything more. My hunch is that if we were to take Homer out of the stuffy classroom and go back in time and witness a telling of the Illiad in Ancient Greece, we would note that it is told in the same fun-loving spirit as we see in The Clash of the Titans, with the audience clinging to their seats, longing to hear more.