I saw this movie at least 10 times as a kid and more in highschool and college, yet somehow every one of those times was a version where this scene was deleted. I was watching it with friends a few months ago when suddenly this scene started playing, I was standing in my chair yelling in excitement “How have I never seen this!”
I cannot fathom why this scene was deleted either, it's the best scene in the movie imo, it's the most interesting, experimental, and beautiful animation in the whole damn movie
At first I posted this in c/videos but I figure it's more appropriate here
I can see why they deleted it, is much too distracting.
And having it be possible in universe to read the Iron Giant's mind and dreams, while humans are worrying if they can trust it, can make viewers wonder throughout the movie if humans will figure out how to read its mind and establish trust that way.
yes, I think it had more impact to reveal that he is a weapon later in the movie
the audience has more time to bond with the giant before realizing he's a real threat and not just a big metal puppy
the movie would've felt weird if we were supposed to be spooked about the whole thing for half of the movie