Continuity mistake: When the two villagers throw the slab of meat on the rock for the creatures, it lands rib side up. A second later the meat is shown from a different angle, and now it is lying skin side up. (00:38:05)
The villagers don't live in 1897, but the present. The village is actually a project devised by wealthy John Walker (Elder Walker). The village elders all suffered tragic losses in their modern lives. To escape violence, they started a village inside a wildlife preserve, walled off from society. The elders masquerade as the monsters to keep the younger and unknowing members within village boundaries. Lucius Hunt is seriously injured and needs medicine. The elders have sworn never to return to the 21st C, so Elder Walker sends his blind daughter, Ivy for the medicine. Surviving a perilous trek, she meets up with a security guard patrolling the preserve's perimeter. He gets medicine for Ivy, and she returns to the village still knowing nothing about the outside world and believing she has killed a monster who tried to attack her. The guard was unaware people were living inside the preserve.
M Night Hater
Ivy Walker: When we are married, will you dance with me? I find dancing very agreeable. Why can you not say what is in your head?
Lucius Hunt: Why can you not stop saying what is in yours? Why must you lead, when I want to lead? If I want to dance I will ask you to dance. If I want to speak I will open my mouth and speak. Everyone is forever plaguing me to speak further. Why? What good is it to tell you you are in my every thought from the time I wake? What good can come from my saying that I sometimes cannot think or do my work properly? What gain can rise of my telling you the only time I feel fear as others do is when I think of you in harm? That is why I am on this porch, Ivy Walker. I fear for your safety before all others. And yes, I will dance with you on our wedding night.
Trivia: M. Night Shyamalan likes to use red in his movies as a symbol of something of significance (see trivia for Sixth Sense and the color red). Here it signified "a bad color" for the people of the village, and they needed to hide this color from one who should not be spoken of, i.e. the "monster."
Question: Why was everyone standing up in the last scene of the movie? Did not make too much sense to me, but it was very apparent so it must have been some intentional directional move.
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