This is a fun flick.
The actors do a good job. Delta Burke is excellent and Lynn Redgrave has many funny lines. The child actors did a good job as well. And while I usually don't care much about Howie Mandell, I think he struck the right note as the Sandman.
Yes, the sets are simple, but this is a fairy tale. Fairy tales are skin and bones--nighttime stories--they are not meant to be miracles of on-location production.
Maybe I'm old school, but I'll take a good story with good actors on a simple stage over fancy special effects any time. My wife and I watched Hansel and Gretel after we watched Cloverfield (with all of its special effects, including intentional shaky camera), and we thought H&G was way better.
Plus, there is no swearing, no boob or penis jokes, and no gratuitous violence. Not that I'm a prude, but I think they did a good job of preserving the message of the movie: magic resides in our dreams.
A fun film for the entire family.