One of the last Bley albums that I really warm to. I think it's partially that 'theatre' influence (a strong Weill/Brecht feel)- along with the influences/musicians from the free scene - that makes her earlier music so distinctive. Towards the end of the 70s her music, to my ears, starts to sound much more in the American tradition. The quirkiness sounds more mannered.
I more or less agree with you both. When I listened to the album recently, I was struck by how fine the musicians were, and how good the music was ---when Carla was not larding in theatrical cliches. I think hearing it as "theatre" music is perfectly legitimate. I found her theatricisms (?) contrived, and more to the point, in the way of the larger boy of music. I think this tendency got much worse as Carla went on, but there is enough here to make the performances problematic.
This era of her music (and probably most of the rest) could not have existed without the musical outline via Kurt Weill.