Nice work, Josh! I totally agree with you about both movies, and your interpretation of the Mystics is something that had never occurred to me! And, as someone who saw both of these movies as a kid (and still loves them to this day), I’m sure they had an impact on the way my tastes developed. Your point at the end about the cultural moment that produced this dark take on children’s entertainment is very interesting. Bluth and Henson were both part of the Silent Generation (born just under a year a part – thanks, Wikipedia!), which is an interesting group, in some ways less culturally homogeneous than either the Greatest Generation of the Baby Boomers, and more objective about the political and cultural war being fought between the people a little older than them and the people a little younger than them. Henson had an amazing talent for taking taking counterculture ideas and packaging them in ways that mainstream, even conservative audiences could accept.
You’re right about Henson, his ability to take cutting edge, even counter-cultural ideas, and make them seem innocuous behind Muppet faces. What a genius! I miss him.