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Hey, Marcus. I really appreciate your careful analysis, and Jeremy's too. After a good chunk of reflection. I think I understand my objection to the storyline better.
You actually make some very valid points, and you weren't the one I was criticizing anyway. I think that Carnival of Tears could be improved and that the consequences for the actions of both sides (i.e. the loggers and the fey Syntira) should have been resolved a lot better.
Unlike stories such as Macbeth and Hamlet, where we are simply uninvolved observers looking at at tragedy as it unfolds with nothing to do but see the culmination of events that have been brewing throughout the narrative, a module must, instead, actively involve the PCs within the framework of the story. After all they should be the people who make or break it.
This clearly does not happen with Carnival, and that is the fundamental flaw with what should have been a brilliant adventure. This is why I would alter it when I actually get around to playing it.
I'm dubious about the virtue points being any use, because if Syntira is as kind a person as she is made out, she will see, herself, pretty early on that she has made a desperate mistake in calling in the Cold Rider in a pique of anger at the loggers.
Instead I would have her actively seek out the party as early as she can and explain to them about the terrible mistake she has made and is by now unable to prevent(not wait around for them to be seen as good enough to behold her wondrous presence first). She made a foolish bargain and though she hurts for the fey who were destroyed by the loggers, she neither has no wish to see innocent children slaughtered in revenge for it. If she is not that kind of character then you can't feel any sympathy for her or her position, which from a story bent sucks.
Now that being said, innocent people are going to die. That's integral to the plot. She tried to fight evil with evil and as we see in our world today, doing this doesn't work and mostly causes the innocent to suffer.
So as soon as possible (Screw the fireworks display), the party needs to get about and close down as much of the trouble before it gets out of hand, first on the list being the sled ride!
The carnival patrons may be oblivious, but the PCs aren't.
The party needs to be thinking evacuation plans and getting the help of any who are not yet fully under the control of the evil Fey. They need to know about the foul mouthed henchmen Prig and do as much as possible to prevent him returning to his master the Cold Rider.
Quinn to me is a red herring or basically a useless character as he currently stands for most of the plot due to his almost comatose infatuation with his trapped wife and his stupid bargain with the Cold Rider. If the PCs can capture the Prig bastard soon and destroy the shard then Quinn can become be a much needed ally, or if the PCs communicate to him that the Soul Gem is in the hands of the cold rider's evil pixie. Well Quinn's probably got as good a chance as any of catching and killing the little runt as anyone else if not more if he is as acrobatic as he is made out.
Suddenly Quinn can get back in the game.
I would cut the death tolls down per attraction, and get Syntira to help out as best she can too, if she really cares that much.
The Cold Rider can be isolated from his power position quite easily with a clever group of PC's.
But there should be consequences at the end. Syntira, Quinn nor the loggers are innocent of guilt and all should be made to resolve their differences in light of what happened, with the PCs being the one's calling the shots. Arbitration whatever? The town should not just turn evil or be wiped out so easily. But reparations on both sides could be negotiated and good XP rewards for the resourceful PCs who ended something that without them would have been a massacre.
Big problems for me
(1)Too many guilty onlookers not taking responsibility soon enough.
(2)Loggers not caring about the demise of the Fey's home in the name of profit.
(3) Too many innocents being killed and the party unable to act usefully and informedly until they accrue enough Virtue points.
These are the things I would change, but at its heart the adventure covers some very important and challenging issues that mirror much of
what is wrong in our world today.