It's more like Nightmare Fuel, but the Queen's transformation is, for some fans, considered to be a fine piece of work, probably because of the effects that the animation creates.
When the Queen transforms herself into the hideous peddler. It was a huge challenge for the animators to not only depict her changing, but to show how she felt as she did. The result has served as pure terror for generations of kids, but it's also a truly awesome One-Winged Angel moment, and it shows just how evil she is - as suggested by Hans Conreid's Magic Mirror in the Disneyland TV show's "Our Unsung Villains" episode, she may be a Vain Sorceress, but her hatred for Snow is enough to trump even her vanity for a time ("just so you wouldn't get bored with this story"; the theme of the special was how villains are underappreciated for the conflict they provide that makes good drama). (Runner-up: her gleefully watching Snow succumb to the poisoned apple.)
The whole movie qualifies, at the time it was made a feature-length animated film was nothing short of miraculous. The fact that Walt and Co. made such a stunning and enjoyable one was an outcome no one planned on.
The dwarfs chasing the witch through the forest and up the mountain. And Grumpy's the one leading the charge!
The seven Dwarves many not look all that tough, but if you piss them off, they will come after you.
And armed with little clubs too. They were going to beat the shit out of her!