Yeah I too thought they botched the ending.
I also don't have a problem with dark endings either. But for what they put into the first two acts, they had something really special going on (especially Hawke and Rylance's acting, I thought they were showing legit terror and believable emotion, loved them both).
Instead of finishing with a longer 3rd act and bringing it all home, they sort of copped out with the whole perpetuated unfortunate end of the family.
I wouldn't have minded if it was the girl being the one possessed by Mr. Boogie, even if it was predictable. But they didn't find a way to work in the other child's night terrors into a useful hurdle in the 3rd act. They also completely wasted the Sheriff's role (he really served no purpose), and I feel the same about the helpful Deputy (he had minor use, as he revealed the predictable address connection). Ditto the Professor (when Hawke's character ended the conversation, I felt like, I dunno, that should have had some resolution, at least Hawke should have answered the professor's question, that was kind of silly to just end the call).
To avoid just being a total critic without construction, I would have liked it much better if they had established that the child possessed by the demon developed super-human abilities to aid them in the murders (which would explain how all those kids miraculously were able to rig up the elaborate murders and carry them out).
The two cops (Sheriff and Deputy) should have played an actual part in that third act. Sheriff could have hindered the Deputy, perhaps, but maybe the Deputy takes a road trip and breaks up the murder of the family (or at least hinders it, leaving the possessed child to hide while the Deputy aids the family in getting untied). The professor could have just provided foreshadowing as to finding an account of what happened in the old days where it gets revealed that the kid possessed by the demon was actually caught by someone back in the middle ages, and they discovered what had happened (leading up to Hawke's drugging).
We could also have seen the demon itself manifest and play another hurdle to help aid the possessed child now that the ritual was broken up, in this case.
All of these ideas I would have found more preferable for a third act, and it would have vaulted the film into being something truly special imo, instead of a good setup that fell flat, as it was.
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