I think they can be both, but creepy is a bit subjective.
For me, the spasmodic movements, the off-kilter blinking and the slowly flapping jaws combined neatly with the dissonant nursery music to remind me of a few dozen bad horror movies. But terrifying? Not even close.
And damned clever, too. There's not much sand going in, so whatever mechanisms are inside are really well balanced.
Yep. Totally owned his material. Great stuff.