Sounds like McGee's trying to make a horror sequel to the original OZ film. Thanks for the thought McGee but we got one of those already [http://en.wikipedia.org/wiki/Return_t
z]. How about you follow your example from Alice 1 and, I don't know, [i/]use the source material[/i]! Seriously, the Oz books have Wicked Witches, winged monkeys, living trees, Mombi -a witch in the sequel movie who [i/]could switch (still LIVING) heads[/i], the Army of Revolt (bunch of women who use knitting needles as weapons. Seriously, taking this into horror territory wouldn't be hard), the Hungry Tiger (always hungry tiger who wants to eats babies and children), the Nome King, Princess Langwidere of Ev (she's the head-swapper in the books and she wants Dorothy's head), the Flatheads rulers Su-dic and Coo-ee-oh, and finally there's the Deadly Desert that completely surrounds Oz (it's a magic desert that turns people who try to walk across it into [i/]sand[/i]. I mean, come on now!). And this is only the stuff that's portrayed as evil within the book series without any twisting yet. I mean, Glinda and Princess Ozma (the "good guys" leaders) run a Big Brother-esque dictatorship that controls the use of magic. Don't tell me that can't be twisted into something horrifying.
In short, there's already a ton of horrifying crap in the books; do we really need to add zombies to the mix? I like the idea of a steampunk Oz though...