As a big fan of foremost Happiness and Storytelling, I'm very disillusioned about the fact that Todd Solondz may never make great films like those again. This was a disappointment, but not exactly a shock after the gloom of Palindromes.
I'm not sure if this is really supposed to be a sequel to Happiness in the normal sense, but yes, a lot of the characters from that one are back. Sadly Solondz has turned Joy from a half dysfunctional "loser" to a freak, and every scene with her is pretty unbearable. The dad from the first film has also changed a lot, but that makes sense seeing how he's been in prison for years when the film starts.
Palindromes sort of drowned in gloom and repulsion. LDW isn't quite the same but it's still bleak, and often creepy. At times it borders to psychological thriller.
I have to respect Solondz for making a philosophical effort, but if there was a specific point with the story, I didn't quite get it. There's the subject of fear and hysteria in the U.S all over, but other than that, I didn't get that much out of it. All in all it was like a (expectedly) weirdish film with a lot of darkness and absurdity. Happiness and Storytelling were dark but also very funny and balanced with a sort of pleasantness that I just can't see here. It's like a long nightmare.
Before Palindromes Solondz was to me possibly the greatest living director. I REALLY hope he either gets back to his old form or tries out something new that works better.