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Elliott Smith – Kings Crossing (Alternative) Lyrics 13 years ago
I can't agree very much about this song, not being Smith and all, but there are a few things I'm certain of.

Firstly, "Whiskey works better than beer" is a reference to aversion therapy, a treatment for alcoholics. This often involved emetic drugs (tablets to make you throw up) in alcohol to create negative associations and shots of whiskey was the most used substance due to its distinctive taste. Therefore "they" is the advice of a medical professional or psychologist, mostly likely within a rehab clinic. The recurring nurses and medical themes concur with this. I presume the judge sentenced him to rehab possibly for drug possession, or perhaps it is less literal and the 'judge' is his family or friends or even a section.

I agree with those who say the song reads like an extended suicide note. This is obvious from the beginning to end.
"Dominoes are falling in a chain reaction" - a series of uncontrollable events
"Nobody gets a reprieve" - torturous depression
"I can't prepare for death more than I already have" - obvious, really
"The game looks easy, that's why it sells" - reference to multiple failed suicide attempts, either by himself or others in the clinic.
"It don't matter 'cause I had no sex life" - depression inhibits libido
"Give me one good reason not to do it." - possibly the line in the song with the most impact. Obvious suicide link.

The Christmas theme references seasonal affective disorder, where depression is worsened in winter, and also the winter of his life - close to the end. The skinny Santa is clearly a drug dealer, evidenced by the needles on the tree.

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