Just finished playing it with my four year old. (Edit: Total playing time, two hours. Wow, it seemed longer than that.) I have to say, I was less taken by it than I had been when I played it as a kid myself (11, I think?). I played the EGA version, and I think the video above has it right -- the VGA version is actually rather less attractive, and the loss of the music in the "talkie" version is catastrophic. The talkie version also has some weird sound glitches; in general, the voices were sampled in a pretty crappy fashion, and there's an audible "noise" to them that makes it obvious when they're awkwardly cut. (The talkie version was a necessity because having me read the text aloud really loses quite a bit.)
What stood out to me this play through was not just how easy the game was, but how crabbed it gets near the end. Loom island is generous with its space. It feels open and you experiment a fair amount with the magic. But from the waterspout on, the game narrows and narrows, culminating in an extremely linear and repetitious finale: walk left, enter portal, cast heal, enter portal, cast close, walk left... until you reach the end game, where you just repeat the drafts backward. Adventure game finales are always tricky. Only Monkey Island 2 totally nails it, and Loom's does a lot right, but the gameplay is really weak.
Intrusive cutscenes also dominate the late game. At the end of the Forge sequence, you get: (1) cutscene as you're brought to the cathedral; (2) cutscene in the cathedral; (3) cast one spell; (4) cutscene; (5) click on sphere; (6) cutscene; (7) click on staff; (8) cutscene, and this continues as you go through the portals. Some of the cutscenes are pretty long, too. My kid was constantly asking when we'd get back to playing, but the answer is that after Forge, you really never get back to playing.
I also found Bobbin somewhat less likable as a character, perhaps because of cut dialogues, perhaps because of the removal of nostalgia-lenses.
Overally, though, it's still a beautiful little game, cleverly made. I think the EGA version's first third is truly magnificent, and the talkie's first third is still very good.