Gary is somewhat of a toddler at times. And a distracted pedestrian.
IIRC, they didn't really approve of it - which is partially why they embraced Maggie so quickly (imo).
Nah, it's not hard at all for me to completely blame Eric. He's been spinning a lie the entire time with very vulnerable people. IMO, that's pretty freaking low. Yeah, Jason's got that sweet puppy dog face, but so do a lot of scammers, which is why they get away with it.
I thought coming clean to Theo was an excellent scene, given how they hit hard on the value of honest. Not to would have been hypocritical. I think honesty is the best policy in general, even with young kids (ok, so I did lie about Santa...so I'm hypocritical too.)
I saw the original play back in the 70's and loved it. Didn't care for the movie. But the thing that sticks with me right now as being inappropriate is not so much the raunchiness, but the message - good girl remakes herself into a "bad" girl to get the guy. Terrible message for kids in their formative years.