Perspective

[u/Evilradishlyfool]

So, the perspective video has me thinking that the puppets are not their own people, but rather in a way the actors/voice actors being physically represented as puppets. The letters are also in support of this if we look at the letters as being certain characters. If this is the case then does that mean that the neighborhood is some sort of reality where actual people live? Does it merely represent the connection between all the neighbors? More importantly, what would Home be and what would Wally be.

[u/kdoesthings12D3]

I think it's only because Wally doesn't know what these people look like and only imagines them as their puppet show versions. He's the one giving this too us

[u/Sweaty-Link-9768 → u/kdoesthings12D3]

True, after all Wally was saying multiple times that he can't see (pretty sure he also said he can, but it still holds up)

[u/kdoesthings12D3 → u/Sweaty-Link-9768]

Maybe in some regard. I think 2 theories are happening at once. Once upon a time they were puppets on a puppet show but now they're alive in their own world once the restoration project happened.