I agree with you but also, I think Pan's Labyrinth was built to be kind "rustic" or old school style of "horror/fantasy" as we saw in many movies of 80's like "Never Ending Story", "Legend" (how I love this one), kinda... "homemade". I am picky regarding technology in movies, I can notice perfection or imperfection in small details, yet I don't miss this in Pan's... because seemed that the story matched with the technology. No need to be better at that time and, imo, I don't think should be better than that these days (this means, Pan's... is a movie that should never be redone/rebooted again). It's different when I see "Lord of the Rings", although they had great technology on those days (and they created few more new effects to cinematic universe), when I watch again, some poorly done effects (trying to be great), really bother me. Specially in lights and chroma key work.