Continuity mistake: At Skull Rock, after the crocodile has nipped off a good bit of Hook's clothing, sock and shoe, when Hook rushes toward Smee in the boat the crocodile opens his mouth, and just as he swallows Hook he's nearly fully clothed and wearing both socks and both shoes.
Continuity mistake: In the duel at Skull Rock, after Peter leads Captain Hook onto thin air, Hook drops his sword and scrambles to grab hold of the cliff again. But when we see Hook's reaction to the approaching crocodile, you can see his sword back in its sheath. (00:51:50)
Other mistake: At Skull Rock, when Peter Pan mimics Captain Hook's voice while talking to Smee, just as he says, "Oh, and one more thing," note the handle of Peter's dagger. The animation of his dagger is bizarre, the handle's grip is separated from its pommel, as if it's going through Peter's forearm. (00:41:50)
Continuity mistake: When Peter and the Darling children land on the minute hand of Big Ben's clockface, in the first shot it's 8:15, note the hour hand is at the eight directly opposite the number two, but a few shots later when they fly off towards the sky note the hour hand is directly opposite the number one, which means it's 7:15. (00:19:40)
Continuity mistake: At Skull Rock, when Captain Hook is swallowed by the crocodile Smee conks him on the head, and while Hook is underwater note that he has a left hand and his hook is at his right side, but it should be the opposite way. (00:45:00)
Continuity mistake: Before Smee gives Hook a shave they hear Tick-Tock Croc approaching, and when Hook nervously spins around to look at the water, note that he has a left hand and his hook is at his right, but it should be the opposite way. (00:24:20)
Continuity mistake: After the mermaids splash Wendy with a ton of water, her hair is wet and you can tell because it is sort of hanging down and drooping. Then they cut away, then when they cut back to Wendy, her hair is perfectly dry. (00:37:55)
Continuity mistake: As Peter Pan flies up to get his hat back from Captain hook in Skull Rock, he stops in midair and has a shadow, and then the picture changes to Wendy, who then says, 'whew' and then it changes back to Peter and he doesn't have a shadow.
Continuity mistake: In the mermaid scene, Wendy lands on a rock barely large enough to stand on. A few moments later, when she's being splashed by the mermaids, the rock has expanded to about four times its original size, and a seashell has appeared on it.
Continuity mistake: When you first meet Captain Hook, there is a pirate singing. In one shot his foot is painted and in the next, it is not.
Continuity mistake: During the song "You Can Fly", Michael picks up Tinker Bell because he wants to make Nana fly. When he does so, she is right side up with her head by Michael's thumb. However, in the next shot when he shakes Tinker Bell over Nana, she is upside down with her legs by Michael's thumb.
Continuity mistake: In the beginning of the movie, when John and Michael are fighting, John has a red bandana tied around his head. When they all rush over to Nana the bandana is gone. Right after that, when he is in bed the bandana is back on him and his mother takes it off.
Continuity mistake: When Tinker Bell is about to ruin Wendy's reflection, she doesn't have one. Later, when the fish is snapping at her she doesn't have one either, but even later in the movie, she has one.
Continuity mistake: When Peter Pan and Hook are fighting on Skull Rock, Peter puts his knife in his mouth. However one shot later it is safely in his sheath. (00:43:30)
Continuity mistake: When the lost boys are going into their hiding place, Hangman's Tree, the trapdoor is opened by one of them pulling on a noose. However, when Hook and his minions show up later, the noose has vanished.
Continuity mistake: As Wendy is singing 'Your mother and mine' she lays Michael down. As she is laying him down, her nightgown turns white. The next time you see her, her nightgown is blue again, also her bow changes colour too.
Continuity mistake: When Mr. Darling knocks over the building blocks that Nana just put together, you can see that there are many blocks scattered all over. In the next close-up shot of Nana (when she knocks over the remaining blocks), some blocks have disappeared.
Continuity mistake: About two shots after Peter Pan says "Second to the right and straight on 'till morning", you can see that Wendy's face is gone. As she flies nearer to the "camera", her face slowly develops an eye, but that's all. (00:19:50)
Continuity mistake: In the beginning scene where Mr. Darling is upset about his chalk-covered shirt, there is a tall gray design in the center, but in the next shot it's of a lake.
Deliberate mistake: After Captain Hook pushes away the boat, Mr. Smee loses the oars, and in the next shot, the oars are back.
Chosen answer: He's too much of a bumbler and too cheery (for example when he tells the crew "good morning" and they wanted to know why it's so good.) They probably also see him as a fool and brown-noser since he's always trying to make Hook happy. To the crew he's just Hook's assistant and not a real pirate at heart.
Bishop73