Just so I’m clear, what role does the Spanish Civil War play in Pan’s Labyrinth? Is there a deep allegorical link, or could an American version set in Bloody Kansas have worked equally well? A woman and her daughter have married Quantrill or some other border ruffian, but their farmhands are secretly Free Staters. The girl finds fairies in a corn maze. The Wizard of Oz meets Cold Mountain.
To be clear, the issue here is whether there are subtleties of the Spanish Civil War, its cultural relevance in modern Spain, and the importance of aspects of the Spanish Civil War that non-Spaniards may be unfamiliar with.
I suppose a better question might be to discuss what would be different if the movie were set in an English home where a group of children were sent to wait out the Blitz.