The story is told from a child's POV because that's what the story is ABOUT. It's a Peter Pan tale (they even have the mother reading Peter Pan to Gertie in it). Eliot is at a point in life where he's in danger of losing his childhood innocence in order to become 'adult'. What this story is about is kids who are exposed to this creature rejecting the evils associated with adulthood (like cynicism and violence) and retaining their childhood sense of wonder and innocence. Eliot 'comes of age', and when ET 'dies' all the adults finally shed their masks, and he sees them as flawed, vulnerable people. From that point on adults other than his mother are shown in full.
As a side note, by keeping Coyote et al. as shadowy figures it enhances the sense of danger that they represent. They're strangers with unclear motives. They seem menacing, which enhances the atmosphere of the film.
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