I would say "Ringing Bell" is the most depressing animated movie, at least that I've seen. It's a Japanese kids movie that's essentially about how life is an endless struggle that nobody can win, and unlike "Watership Down," there's no happy ending. It's a really good movie, though; I have watched it so many times.
I actually didn't find "Watership Down" all that depressing. Rather gory for a "U" rating, certainly, but other than that, I don't think it's very sad at all. It's about bravery, teamwork, and overcoming danger, and the rabbits live "happily ever after" in the end. I was expecting to see many more disturbing scenes after reading about the movie before I watched it; compared to my expectations and other similar movies I've seen (The Plague Dogs, for example,) "Watership Down" is quite tame.
I did watch it for the first time as a young adult, so I don't know what it's like for a kid, but there are much, much darker animated movies than this. I wouldn't recommend showing this to just any child, but older and/or more mature children should be fine.
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