Saw it last night. LOVED IT. OH MY GOSH I LOVED IT!
In terms of kid-friendly Miyazaki films, in my mind there are only three that really young kids should watch. Totoro, Kiki, and now this. Some might say Porco Rosso, Spirited Away, and Howl's Moving Castle fit the bill, but I'd say you really shouldn't watch those until you're 7 or 8. A 4-year-old, however, could handle Kiki, Totoro, and Ponyo.
And among that trio of "super-kid-friendly" Miyazaki films, Ponyo is out-and-out the best of them. It has the best music, the best visuals, and the best story (with Totoro as a close second on story). But suffice to say, I super-duper loved this movie. Some things I noticed:
1) the use of "transitional forms" that was done really well in Howl's Moving Castle is back. You'll remember the female protagonist started young, but was cursed to become old. Then, at different times in the movie, sometimes for different reasons, she would have young skin and speak young but have gray hair. She had like, four different forms in sum. Ponyo is the same way, sometimes going back and forth between human hands/feet and chicken hands/feet. And then of course there's her fish form, and she also changes size.
2) Many of our cherished fantasy novels have some tie-in, usually via metaphor, to religion: either Abrahamic (Judeo/Christian) or Eastern (Hindu/Buddhist). This story is one of the first I've seen that does MAGIC and FANTASY really well, allowing tons of crazy supernatural stuff, but still clearly espouses a "naturalist" evolutionary philosophy. And though I'm a Christian, I can most definitely appreciate what was done here.
3) The only thing I didn't like was the climax/resolution. If I understand correctly (SPOILER ALERT!), the deal is that if Sosuke didn't choose to love and accept Ponyo for who she is, she would turn into seafoam and die ... and the whole world would also be destroyed by the moon coming too close to earth. But it's not like Sosuke has to wrestle with the decision. He would've said, and meant, the same thing about Ponyo after the half hour mark. The rest of the adventures they go on don't necessarily strengthen the bond. They're children and they think the world of each other; but "growth" in their relationship doesn't seem to affect anything, nor is there ever any conflict in their relationship. Again, I'm acknowledging that they're children and this is a children's film, but I never once felt like there was any risk or difficulty in Sosuke making the right decision.
Anyone else want to weigh in?
Ramza