The live footage bit was just a feeble attempt to cash in on the Blair Witch Project craze at the time. I enjoyed Blair Witch for it's originality (even though some would claim even it was a bit of a ripoff of the Cannibal Holocaust idea) but that idea just does not work for films like this. And if you remember the marketing of Blair Witch helped it a lot at the time (the whole, "is it real or not" vibe) that they managed to pull off. But yeah, that movie made a ton of money and the producers of Halloween saw dollar signs. So to me, it just felt gimmicky and annoying. I hate blurry, shaky MTV-style camerawork and editing. Give me nicely composed shots like John Carpenter's films any day over that stuff.
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