"Pinocchio" depicts smoking and drinking (common in Disney flicks until relatively recently, though "Pinocchio" stands out for showing use by child characters). If you look closely, there might be harder stuff, too. The whole movie could be interpreted as a metaphor for Pinocchio's addiction and recovery. Psychotherapist Dr. Dawn-Elise Snipes proposed this reading, and now adults can't un-see it no matter how hard we try.
It all starts when Honest John gets Pinocchio "hooked." It's hard for Pinocchio to say "no" to him, and only gets harder with each encounter. From there, Stromboli exploits the little puppet, not unlike a drug dealer. Whenever the Blue Fairy finds Pinocchio in a cage, Pinocchio feels humiliated, and his growing nose might symbolize the self-loathing that people struggling with addiction sometimes feel.
Recovery isn't easy. Pinocchio gets sucked in again after Honest John poses as a doctor and "prescribes" a visit to Pleasure Island, which might remind viewers of addiction caused by medical malpractice. Soon, he's riding the high of Pleasure Island. It's only when Lampwick starts sprouting hooves (a metaphorical overdose, perhaps?) that Pinocchio is scared into quitting.
Admittedly, the addiction angle probably wasn't what Walt intended. But he obviously meant to make a movie about temptation, and an addictive substance can be a strong one indeed.
