These are what we call the 'YMMV items.' Things that some people find in this work. We call them 'your mileage might vary' because not everyone sees these things in the same way. This starts discussions in the trope lists, a thing we don't want. Please use the discussion page if you'd like to discuss any of these items.
Bizarro Episode: In a recent YouTube 'e-card' pitching an alternate scenario for 21st December, an alien ship crashes into the asylum, which the toys subsequently commandeer.
Crowning Moment of Awesome: Whether you sympathise towards Dr Wood himself or not, him fighting back mercilessly against his hallucinations using the hypodermic needle that induced them as a sword is pretty awesome regardless.
Jerkass Woobie: Dr. Wood. He's paranoid, is constantly worried by the idea he's not as skilled as he wants to be, and is terrified of children and never had a chance to connect emotionally with anyone. This doesn't change the fact that he's an arrogant, greedy Attention Whore, though this does explain it.
Nightmare Fuel: Failing to cure a patient can be disturbing, especially if you accidentally kill one with the electroshock therapy.
There's one particular moment in Sly's story where the picture of Sigmund Freud comes alive and assaults Sly, claiming the snake has a crush on the "therapist". And he's right.
At one point in Dr. Wood's therapy, you can induce him to perform dream analysis upon the sock puppet therapist and see a dream about the sock puppet watching dancing scissors performing Swan Lake, one of which dances closer and closer to her, its blades snapping open and shut all the while, until... It might sound silly in text, but it's genuinely creepy and disturbing when viewed in-game.
It's also unsettling when Dr. Wood goes into "cult leader" mode and hypnotizes you, the player when you try to give him dream association therapy.
And there isn't much evidence either way that this hypnosis didn't work. Your player character seems more than willing to join the others. Which begs the question of what "precious item" he took from you...
How messed up Dr Wood really is depends pretty much on the order of play. If you play him at the beginning before any other patient, he tries to con mentally disturbed patients of an asylum into believing they are healed in exchange for items that are important to them. But if you play him at the end when all other patients have already left the asylum, they come back for the climactic sermon-esque meeting anyway, implying that Dr Wood, in his desperation for beings to heal and to worship him, causes the patients you have already cured to relapse, making him overstep the Moral Event Horizon. That is, if the entire scenariowasn't merely an extended dream sequence...
Squick: Look at the blunt end of those claws Dr Wood carries around. Really look at them. You can see white dots there. Those are parts of bones. Those claws came from a real damn bird.