If I had to critique this… thing… I'd say the attempts to be deliberately creepy weren't needed, like burning Pete in boiling blood or whatever that Garry's Mod-esque flailing was supposed to be. The loose-limbed schizophrenic puppets were more than enough.
There's nothing magical or special about this other than the entertainment value (though admittedly there is plenty), especially as there is no real animation ability needed here. In fact, the worse it looks the better for this… Shrek-heavy "genre" of purposeful nightmare fuel. Funny while it lasted but not worth thinking about for more than a second or two.