I went to see Watchmen yesterday and I have to say that it was better than I expected. I finished reading the graphic novel the day before, so it was still fresh in my memory when I went to see it, and while certain elements were changed in order to fit the entire twelve issue series into a two and a half hour film, Snyder retained enough of the story and faithfully reproduced the visual aspects of the series that it felt pretty true to the original.
Much of the dialogue is straight from the series, and the parts that are not still fit reasonably well within the original story arc so that it does not distract from the overall theme of the series itself. The same goes for the ending, which, although is slightly different, still imparts the central message that original ending does.
For me, the message that I think Moore was trying to convey is the most important part of the series. Others, of course, might disagree; but all in all, I was not disappointed. It was not only a good movie but it carried much of what made the series what it was, which, among other things, a social commentary on the Reagan-era. The underlying message, however, is timeless.
As for Dr. Manhattan's digitally animated nude scenes, I had no problem with them. There were a fair amount of those scattered throughout the series as well, although his genitalia was not as defined, but I am surprised that so many people found them uncomfortable. I could hear a lot of the people in the audience snickering at them in the theatre, and I have since read a lot of negative comments written about them online.
I do not have a problem with male nudity in general (I noticed that nobody snickered at the Silk Spectre's breasts), and considering that it was in the series, I really do not see what the big deal is besides the fact that he was pretty hung. Apparently, seeing things like broken bones protruding out of the skin, arms being sawed off and human bodies literally exploding are less disturbing than seeing a digitally animated penis. Strange, really.