@socketwench - I remember when Dark Crystal came out, it was meant to be "puppetries big break" in movies, so that it would be taken seriously. It still ended up being a kids movie.
I think Labyrinth is another attempt at that, but they aimed a little lower. Instead of trying to be a high art piece, they aimed at adults and kids to make a mainstream fantasy movie, and it failed to make it big when neither audience was really into it.
I don't remember Labyrinth being popular until it came out on home video.