One thing I much preferred about the first season was how much more "normal" things appeared via sets and scenes.
...
Then, as monsters proliferated, the sets and background folk vanished. The sense of the bizarre, mysterious and macabre amidst normalcy was gone. To me, something was lost from that very first season.
I agree that the earlier part of the series was much more grounded in reality. It was so fascinating to see those early kitchen scenes -- and especially the location footage in the town and at Seaview Terrace.
On the other hand, one could make the argument that as the show became more fantastic in plot, the settings and surroundings became attuned to that, becoming more abstract and removed from reality.
Hitchcock's films are sometimes criticized for their sometimes "fakey" aspects -- rear-projection, silkscreen or matte backgrounds (not sure of my terminology here), even in such late films as "Marnie." Others argue that Hitchcock deliberately wanted to set certain scenes against a slightly unreal, perhaps expressionist, background. One might say the same of Dark Shadows ...
Even in some contemporary, art-house type films (usually European) the artistic vision of the director is one of stylized sets and unreality -- just off the top of my head, I can think of "Edward II" (Derek Jarman), "Querelle" (Fassbinder), "Suspiria" and "Inferno" (Argento) ...
It's interesting because I've seen customers/viewers reviews criticize the "cheapness" or "fakiness" of some of these films, where actually the look of the film -- the removal from the mundane and ordinary -- is deliberate.
Whether the artistic vision in the case of DS was deliberate or a matter of economics, it's clear that the end result has a distinct effect on the viewer ... and we're certainly forever tied to the visual and visceral effect we've received whenever we think of the show.
(OT - It could be fun to think of contemporary movies that were shot entirely on soundstages, no location shooting, and how that creates an imaginary world -- Victor/Victoria, Sleepy Hollow (which I haven't seen -- did the recent Moulin Rouge do this?) etc. ... )