Well done
I was really just going to give this movie a 9 and a quick review, but after reading your summary paragraph, which flows really well and immediately instilled an abiding curiosity in me, and seeing the movie all the way through... I'm going to have to give it a ten.
The animation itself is not exceedingly well done or praiseworthy, but the environments and the characters communicate a special simplicity to them that seems to help the movie along nicely. It also keeps the viewer from being overwhelmed by details. Towards the end it gets noticeably better, with the blue and orange men (who are animated very well during the reproductive sequence, reminding me of M.C. Escher's fabulous tessellations) diving off the cliff like a horde of lemmings being one of the better scenes. I also noticed an improvement in animation for the orange man's scene in which he tackled the gray creature, as contrasted to the opening scene of the blue man simply grabbing it.
The music fits with the animation well enough, but like the animation it is not all that memorable nor is it anything new. However, it gets the job done and it inspires a state of mental lucidity in the viewer, and keeps the movie from being a silent bore while at the same time not distracting them with unnecessary noise. A nice choice, I like how it worked.
It would seem, Madsen, that you have stumbled upon a hit in your experiments. Trippy, smooth, and at times even moderately funny, it may not be the best in its class, or the most original, but its weird as hell and in all the right ways.
Moreover, it's got a huge fight scene. And somebody gets gored through the head while monologuing, ironically pretending not to monologue... Two thumbs up! Favorited.