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It was pretty great for what it was: a faithful adaptation of R/B (Mega Charizard shit aside).
Red/Blue's plot is not anime material. If it covered the whole game's plot, then we'd have a very boring show, because R/B's plot only works in a video game where you can forgive an uninteresting story. That's why the anime and PokeSpe added way more details. Making it a four episode romp was honestly the best decision.
Also no, the Lavender Town shit wasn't a reference to the creepypasta. Those NPCs where in the actual game, try talking to them.