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This film has some truly great setpieces, backgrounds, and design.
It is in no way as endearing or charming as the original film. But the thing I appreciated the most is that this is a reflection of the environment, not the pig! Babe is just as moral, kind, and good in this film as he is in the previous. He retains his quiet dignity and kindness (and perhaps even strengthens it) despite the wickedness of "The City".
I think "Paddington 2" may have taken inspiration from this film a bit. The main beats of the two plot are rather similar. Though the color scheme in this is closer to "City of Lost Children" or "Dark City".
It can be a little dark at times, and the city and its inhabitants are decidedly adult, but this only strengthens the moral character that Babe shows throughout the film.