I didn't find The Village too disappointing, though it was definitely M. Night Shyamalan's most flawed movie yet.
***THE VILLAGE Spoilers***
I didn't have a huge problem with the creatures not being real. In fact, I thought the idea was rather fascinating (a small society being controlled and exploited by a few through this creature charade). I did, however, believe Night could've presented it in a much better fashion. The first 70 minutes of the film were great -- very atmospheric and intense, reminded me of Tim Burton's great Sleepy Hollow. The last 30-plus minutes, on the other hand, felt very dutiful and dry -- the suspense dried up due to extremely over-the-top explanation (once we know *everything*, the scares just aren't as strong) and it felt as if the script skidded to a halt and began to just underline and highlight the twist.
I thought the film was, overall, a worthy effort. Signourney Weaver, William Hurt, Joaquin Phoenix, and newcomer Bryce Dallas Howard (director Ron's daughter, who stars with Cinderella Man's Paul Giamatti in Lady in the Water) all gave great performances and it was well-made. But I will admit the ending tested my patience and the film was, as I said before, M. Night's least appealing to date (The Sixth Sense and Signs are, in my opinion, flawless).
***End of Spoilers***
Anyways, to answer your question (sorry for the ramble
), I am betting Lady In The Water will be a return to form for M. Night and be a great suspense movie. The cast is strong, the trailers (so far) are intriuging in their mysterious creepiness, and I love the whole fairy-tale-in-the-real-world concept. I'm am hoping it's a good movie and hit, because M. Night's one of my five favorite writer/directors. I'll definitely be seeing it opening day (July 21st) and am hoping for the best.