>>>This proposes a question - can a film be both edgy and kid-friendly? Hmmmm....The Muppet Movie anyone? Kind of edgy for its time.<<<
In 1999 Disney released a G rated film that I believe was one of the best films of the year, called The Stright Story. Directed by astonishingly twisted David Lynch, it was overlooked just like 1999's other 'hushed Disney release' Princess Mononoke(I wonder if most Disney completists even know about those two films) So a G film can be quite edgy, as can a kid's G film.
A lot of what you are talking about is PG rated. NBxmas, Shrek, Ice Age, Antz, etc was all PG. These days PG-13 is also sometimes a kid's film demographic.
But to say Monsters Inc coddles to kids...it is a pure example of sheer imagination and adventure not seen in a cgi film for quite some time. I really think Pixar outdid themselves with that one.
Hey, I dislike pandering to kids in films as much as any movie fan...everyone knows you can appeal to both levels. I thrive in real life on both levels...on a kid like love of things and on an intellectual level. I think we all do to even be on here.
To that end I think Monsters Inc was extremely affective.
I truly think Monsters Inc is the best film of the last year, thee best Pixar ever, and one of the top 5 Disney releases ever.