This is by far the most ambiguous song on the album due to its simplicity. My theory is that the song is about balloons in the context of the later tracks Balloon Maker and He Tried To Escape. The "they" who can not let it expand would be the monocle men (the controlling government referenced throughout the album). In their desire to limit all thoughts, work, and most importantly escape, they decide to outlaw balloons - not letting them expand. Several other tracks on the album use "they" in an equally ambiguous way, though they all seem to point towards the monocle men. In Kingfish Pies, "'they' turn up the machines", and who else would be controlling manufacturing in this world? In Anabel, "'they' made a dragon stage" as part of an elaborate parade directly linked with the monocle men in Some Of Them Were Superstitious. In their all-controlling way, it seems only fitting that the "they" referenced in this song are the monocle men not letting anything happen outside of their plans and power. The switch at the end from 3rd person to 1st (implied) and the distinct change in vocals indicates that "It's pretty in here" is being spoken by someone entirely different than "they". Because this comes at the end of this song, which leads into "Balloon Maker", I don't think it's a stretch to say that the speaker is either the Balloon Maker himself, or more likely the speaker of that song as well. In either case "it's pretty in here" would be referring to inside the hot air balloon. The lyrics "come out to see the sun" from Balloon Maker back the idea that "in here" is in the balloon, and the view of the sun is "pretty". The other theories that I've read here don't play into the overall theme of the album very well, and it is very much a concept album, so I'd find it strange for this song to be so set apart.
This is by far the most ambiguous song on the album due to its simplicity. My theory is that the song is about balloons in the context of the later tracks Balloon Maker and He Tried To Escape. The "they" who can not let it expand would be the monocle men (the controlling government referenced throughout the album). In their desire to limit all thoughts, work, and most importantly escape, they decide to outlaw balloons - not letting them expand. Several other tracks on the album use "they" in an equally ambiguous way, though they all seem to point towards the monocle men. In Kingfish Pies, "'they' turn up the machines", and who else would be controlling manufacturing in this world? In Anabel, "'they' made a dragon stage" as part of an elaborate parade directly linked with the monocle men in Some Of Them Were Superstitious. In their all-controlling way, it seems only fitting that the "they" referenced in this song are the monocle men not letting anything happen outside of their plans and power. The switch at the end from 3rd person to 1st (implied) and the distinct change in vocals indicates that "It's pretty in here" is being spoken by someone entirely different than "they". Because this comes at the end of this song, which leads into "Balloon Maker", I don't think it's a stretch to say that the speaker is either the Balloon Maker himself, or more likely the speaker of that song as well. In either case "it's pretty in here" would be referring to inside the hot air balloon. The lyrics "come out to see the sun" from Balloon Maker back the idea that "in here" is in the balloon, and the view of the sun is "pretty". The other theories that I've read here don't play into the overall theme of the album very well, and it is very much a concept album, so I'd find it strange for this song to be so set apart.