Funny, people nowadays don't seem to realize that this was a World War II propaganda film -- only one comment below makes that point. Many such features and shorts were turned out during this time, and not just from Disney; Warner Bros., MGM and others did as well. Keep this in mind and it makes a little more sense. Even more of the fractured, surreal nature of this film is explainable when viewed in the context of other Disney animated features of this time. "Fantasia" (of course), "Dumbo," "Pinocchio" and other movies contained what seemed like drug- or alcohol-induced sequences (maybe someone with more intimate knowledge of Disney productions of the time can shed some light on those!). Disney also seemed eager to experiment with blending of animation and live action during this time ("Song of the South"). Anyway, this was aimed primarily at engendering better relations between North Americans and our ostensible allies in Latin America. The animation is very good and some of the music (especially the title song) is memorable. Watch it for what it is and enjoy!
Review of The Three Caballeros
