I saw this one in the theater but haven’t seen it since. My wife who I was dating at the time was a big Johnny Depp fan and I like horror so it was a good date movie. I remember it being quite bloody and entertaining but not really one for repeated viewings. Your description reminded me of how loose it played with the source material.
It was quite bloody, now that you mention it. Everything else (and everyone) being stark black and white made the red blood show up really well. This would be a good movie to play in the background at a Halloween party where you can glance at it once in a while but not really pay attention to the story.
The Headless Horseman makes for a pretty good looking villain, though. I wonder how long until they bring him back for a high profile movie?