It is a continuation but TV has changed and Lynch being Lynch it would be naive to expect him to compromise. I'm glad he didn't. This feels fresh and challenging whereas a retread would've been a disaster.
TV has changed, it's become darker and far more adult and serious. But it also requires functioning plot and intelligent characters and that's what I feel is missing from Season 3.
Someone had a great description of this Season which I think fits really well. It's like you're watching TV and switching the channels every few minutes to a different channel. That's exactly how I feel watching it, it's a collection of ideas mashed together into episodes. Throw in some random characters and a few graphic deaths to make it edgy.
It's no shock that the only part of the Season i'm actually enjoying are the parts with Cole and Rosenfield. I can't think of one new character I like, perhaps Dianne but we've seen so little of her. It makes me laugh though when you think of Diannes character and all the messages Coop was leaving her in Original Twin Peaks. Naomi Watts character could be good but that whole story arc pisses me off as it's being dragged out way too much.
I kind of get what you are saying. This has gone too far away from Twin Peaks, a huge part of what I loved about the original was the setting and we are barely actually getting any of the town, plus Lynch comes across as trying too hard to be Lynch on this. I also hate the new opening credits.
I'm enjoying it overall though, but my mrs really doesn't like it at all.
I probably made the mistake of rewatching it recently. I still have it fresh in my mind and for me in comparison it's failing. Others will think it's far better, I guess i'm more of a character/storyline kind of guy rather than a visual kind of guy.