So while I agree with everything you've written here, and your analysis of the book in spot-on, I do think the ending Snyder chose within the context of the movie was the better choice. (I can't believe I'm defending him in any context, but here we go.) Like Poe mentioned, Snyder didn't focus on every part of the source material, and he downplayed the rampant xenophobia. Also, by 2009, we're in an Obama-America, and if anything recent politics have shown us, the average person has a short memory. And unlike in the book/comics, we didn't have time to ruminate on the Black Sails comic-within-the comic, or the lives and commentary given by the scientists working for Veidt. We were given the message that in order to unite people, we had to create a common enemy, but an unexplained space squid would have probably been a step too far for the average movie goer, whose wallets Snyder and Co. were trying to reach. The audience lacked the context for it, by either not having read the book, being over 20 years out from Reagan/Cold War America, and not enough contextual clues from the movie itself. And if you don't do these things, no matter how closely you adhere to the original story, you're going to lose the average viewer.Okay, I'm a bit more awake now. I thought I had discussed this before on here, but I think I'm mixing memories with hating the movie on here and hating the movie on Twitter. Gonna tag @Tinwhistler in case he misses my diatribe.
So, one of Watchmen's major themes is xenophobia, the fear of the other. Rorschach at several points seems to have a distaste for minorities or gay people, for example. There's also an underseeded homophobia around the relationship between Hooded Justice and Captain Metropolis, but it's subtle, so a lot of readers miss it. There's the fear of how inhuman Dr Manhattan has become, not just for his god-like power, but in how he's slowly becoming more detached from humanity (including his own).
Most notably, there's xenophobia around foreigners. Non-white characters is often dehumanized, like how The Comedian treats people during his time in Vietnam. The cars in the comic are all American made, by Veidt Industries (and Dr Manhattan was planning on introducing electric cars).
And then there's the pending Russian invasion.
Throughout the whole book, Russia is like a pendulum slowly swinging its way towards an invasion of the U.S. The book came out in the 80s, at the height of the cold war, when Russia invading or attacking the U.S. was a constant and viable threat. Propaganda against Russia was constant, much like it is in the comic. What better way to show xenophobia than with literal outsides at the gate. The only thing that stops their is world peace, by way of the giant squid.
Here's the thing with the squid. Yes, it's ludicrous. But here's the thing: it's supposed to be. It's supposed to be most ludicrous, unbelievably thing imaginable...because that's what makes it so alien. There is absolutely nothing about it that the average human being can relate to. It's impossible. It's literally a giant, alien, psychic squid. It's literally inhuman.
Which is exactly why it's the ultimate sign of xenophobia. It's so foreign, so alien, that no one on the planet can relate to it. It's beyond borders. It's beyond skin tone. There is literally nothing to relate to it. So, when you have a world filled to the brim with xenophobia, of course we're going to unite against this thing that looks absolutely nothing like ANY of us in any conceivable way.
Which is exactly why Dr. Manhattan as the fall guy instead, thematically or logically, does not work.
He's an American, with an American upbringing, and an American education. He worked for an American company. His accident is the result of an American science experiment. Everything about him traces back to the same problem: America. Sure, he's blue and has god-like powers, but he was still originally human. He still appears human, for all intents and purposes. He's still relatable to the average human in multiple ways. Is he the only blue human on the planet? Sure, but that blue human still has an identifiable penis. Outside of the blue skin, he still shares most traits commonly associated with a human (cis) male.
But the world peace would be even more unstable when it's learned that he's a product of an American upbringing and American science. Russia would likely be quick to scrutinize this and point blame directly at Dr. Manhattan. With the squid, there is nothing to directly tie with American science. Plus, many people forget that upon the squid's arrival, it also let out a psychic whiplash that embedded images in survivor's minds to further back up the believability that it came from somewhere else.
Also, completely unrelated, but it always bugged me that the movie decided to make the explosion "bigger" by having multiple cities attacked all at once, instead just New York. But that's just Snyder feeling like things has to be "bigger" for cinema.
The best example I can think of recently is the movie adaptation of Harry Potter and the Prisoner of Azkaban. A lot of people hailed it as one of the best HP book adaptations. But when the movie was cut together, it never explained that the Marauders had all adopted animagus forms, and Harry's dad had taken the form of a stag. While those who read the books were moved by the emotional climax, people like Mr. Z, who hadn't read the books yet, were like, "What's up with the deer?" and very confused about why it ended as it did.
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