...and I say this as a classic film fan. This is one film that was made for color and I'm sure would have been if it was more readily available at the time it was made. The best kids movie ever in my opinion!
Absolutely color. I grew up with the black & white version too, but I was floored by the colorized version in the 1990s. If there's one thing a Christmas movie needs, it's brightness and gaiety. The old version just seems too noir and drab by comparison once you've seen the colorized, no matter what the anti-colorizing purists say.
Lois Laurel told me that Babes In Toyland was going to be filmed in 2-strip Technicolor, and the sets were painted with bright colors. But production delays, caused mainly by Stan's accident on the set, forced them to return the rented cameras back to the Technicolor company. This is the only black & white film I take exception to my "no colorization" belief, because it was originally meant to be in color. The Legend Films version tops the Samuel Goldwyn any time!
I also agree this is one of the few B&W movies that clearly should have been in color all along. And I'm the most anti-colorization person around, lol.
"Starscream cookies are more than meets the icing!" --Nostalgia Critic