Peter Sellers deserved best actor for Being There instead of Dustin Hoffman for Kramer vs. Kramer
In my opinion, Sellers had a far more interesting performance. I'll preface this by saying I am not a fan of Kramer vs. Kramer, and thought it was quite overrated. That being said, I thought the performances were a highlight. But while I thought Hoffman was quite good, and think he's an incredible actor, I just didn't think it was as special as Peter Sellers as Chance the Gardner.
Hoffman was very good, but he wasn't anything unique to me. At least as a modern viewer I felt like it was good, just nothing to write home about. I'd already seen plenty of great dramatic performances. But Sellers was something else. I don't believe I've seen anything quite like it. The voice and mannerisms are so perfect. And he captures the tone perfectly. Being There has a very quiet and somewhat melancholic atmosphere, combined with incredible comedy. Sellers really sold that atmosphere and tone. He was able to do both simultaneously, which is a really rare thing to see.
I think playing a blank slate is very difficult. Chance has no ego, past, or real motivation. He is empty but everyone projects onto him. He can't be too funny or too empty because the movie wouldn't work. It's more complicated than the more naturalistic performance Hoffman gave, in my opinion. I feel like the comedy bias, and the film being ahead of it's time really killed it's chance for the oscars (didn't even get a best picture nom). But it still holds up so well today.