I just read the guest writer's blog posts on it. He's a writer for Heroes, which means that the horrible treatment of Lookouts makes sense.
I liked the art style, but it just wasn't Penny Arcade. It would be like me going to Subway and getting a Big Mac. I like Big Macs, but if I wanted one right now, I'd have gone to McDonalds. So though I might have liked it in another context, I didn't like it for Lookouts.
And as far as story goes, the most I can tell (and this is after reading the
writer's blog posts on the subject) is that the leader of the group was intending to lead the boys out there, and let the Basalisk kill one (or all) of them. When he saw the boys fight so valiantly, it warmed his cold, cold, heart, and he decided to help them kill the Basilisk, and save the boys. The elders of their town don't like this, because ... I'm not sure why they don't like this. Or, I know why they don't like it: they were sending out a sacrifice to the Basalisk. But I'm unsure as to why they are sacrificing children to this forest anyhow. It seems to be incongruous when considering the original strip, the podcast, and what seemed to be the general flavor of Lookouts that Gabe and Tycho were putting forward.
I'd be interested to hear what Gabe and Tycho think of it. I mean, I know they're not going to be jackasses and say "yeah, we let guests do that, and it was crap. Sorry." but the strip (the writing particularly) was so ...
not flowing from the original concept.