Excellent article and absolutely fair points by the author. As a kid I completely fell in love with the characters and ambiance, but got hopelessly stuck in Act 1. In fact, I don't think I ever made it out.
But man, what a great story and what a beautiful style. I always half expected to see Hollywood pick this up and turn it into a movie. Just imagine what the folks at Pixar could do with this (with Tim Schafer as executive producer, of course).