The "creepy dolls" are known as the "Spectro Sprites".
They were designed just for the Spectromagic Parade and they have illuminated doll faces that are in keeping with the lighted parade floats and so you can SEE them in the dark w/o needing extra spotlights.
They ARE unusual-looking... but if we consider all the strange "faces" that many popular dolls have (Trolls, Cabbage Patch Kids, etc.) and all the ceremonial "faces" that are traditional around the world (Kabuki, African Masks, even CLOWN faces) I don't think that I'm particularly offended or even Creeped-Out by these simple glowing masks.
Now, if I saw an illuminated Michael Jackson face in the parade... CREEEE-PEEEE!