Well I kind of liked this, but not as much as I wanted to. Here's why:
I wasn't too keen on using a mod, but I tried it anyway and my biases were unjustified - Blox has done a great job, and it seems this is the first (only?) level to make use of the new features and does it quite well. There are decent cutom objects, such as the save points which make this seem a little more separate from the normal KS style... more arcadey. The music is much better than I expected after reading comments here, too. The overall level design (the mazey caves, etc) seem to work well - I didn't mind the long death-drop and being chased during the umbrella code parts (though I did peek in the editor for the code - if there was a hint, I totally missed it).
However, the overall atmosphere was pretty bland, mainly because of the limited and equally bland tilesets. It just didn't have any visual appeal for me at all, which is a shame, because it has so much potential with the snow and ice. It just didn't deliver. I appreciate that it is meant to be empty and a metaphor for sadness or whatever, but that doesn't mean it can't still be pretty!
Also, and I might get flamed for this, but the voice acting just didn't really work for me. I know this is probably the main feature of this level for most people, but I didn't feel it fitted in with the KS ethos - the acting itself is pretty good, especially considering its amateur voice acting (which is in some ways more difficult than 'normal' acting), but KS works better when the creatures / knytt aren't humanised too much.
Connected to this is the cutscene length. I know, I know, we can skip it if we bother reading the forum or KSA documentation (which most don't, it seems), but to get any semblance of plot, we have to trawl through these too-long scenes and listen to a storyline that just didn't grab me.
Now I might seem too negative here, but the fact is I did complete the level and I did enjoy it throughout (despite sighing pointedly during the cutscenes). So I eagerly await the next installment. I hope you take on my criticism and don't take offense.
Good luck with the next chapter!