The first was one of my favorite movies growing up. It was just super weird, mysterious, and slightly darker compared to other stuff I saw when I was like....7. Even to this day I'll pop it in every so often and enjoy the overall fantastic oddness of the whole movie.
I'm glad as hell they are using puppets. I trust that they will put the CG backdrops and whatnot in the hands of people that actually give a damn about the first movie and keep the feel similar.