Little Nightmares Theory: Labor in Pale City
I haven't seen anyone on tumblr make a connection between the Porcelain Students, The Hospital Mannequins, The Viewers, and locations within The Pale City:
The Viewers spend all their days watching TV while their faces atrophy into nothingness. So how is the city still barely intact and who is maintaining it?
My theory is that magically animated dolls are laborers for the Viewers. Somewhere in the Pale City might be a place where the dolls are assembled and then brought to life. Once animated, the dolls are shipped off to The School where they are trained to do their jobs by The Teacher.
As these dolls get older, they replace parts of their bodies. When a mannequin becomes too broken to work, they get put into storage at the Hospital. They wait there until they can be repaired by The Doctor with organic or non-organic components. A patients recovery at the hospital can go faster if they cannibalize weaker patients for parts. The doctor is the only intact person left in the hospital because he is on the ceiling and none of the patient mannequins can reach him. It definitely seemed like the doctor decided who got to live and who cut up for parts...
It's possible that there is no doll factory and that the School and the Hospital are a part of a loop. When an animating spirit refuses to go back to work in an adult sized doll, it is transferred back into a student sized doll and retrained. These spirits are scared of being broken down further but they don't want to go back to work. Hence the Porcelain Students going crazy when they aren't being supervised.
Recycling these laboring spirits instead of making new ones is an interesting version of the Bourgeois trying to keep the Proletariat population in check. Perhaps the Dolls rebelled against the Viewers and so in retaliation the production of new doll parts ceased.
Mono and Six may have doomed the Dolls and the Viewers by trapping and burning the Doctor in that incinerator...