The major complaint reviewers have about this movie is that it is too scary for young kids. Most of the Miss Spider stories are labelled for 4-7 year olds and some even for 5-8 year olds. Keeping this in mind, if people decide to let their 2 or 3 year old watch the DVD, then they shouldn't be surprised the children don't like the movie. It is not aimed primarily at that age group.
I personally don't think it's too scary for my toddler and the pre-schooler I care for. Many Disney movies (Bambi, the Lion King, Brother Bear) contain character deaths, whereas in Miss Spider's Sunny Patch Kids, the villain only threatens to eat the characters. He doesn't actually succeed. He also softens up when he finds a spider to love him.
This brings me to the theme of the movie, that home is with those who love you best. A beautiful theme for young children, especially ones with non-conventional family structure.
The animation is lovely, in my opinion. Bright colours captivate the young ones. And sure, not all the bugs look like bugs do in the real world, but if they did, the movie would truly be too scary. Have you ever taken a close look at insects? Whenever this DVD is played in my house, the children burst into "AGAIN AGAIN" when it's over.