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Southland Tales' real plot was far too complex and layered for your average viewer, and they edited the shit out of the theatrical release in order to obtain some mainstream tickets. You really can't understand it unless you read all the supplemental things such as the comic books. Just like Donnie Darko (pre-Director's Cut) relied heavily on exploring the Donnie Darko website. Not everyone like's this style, but at least Richard Kelly is doing something different.

As for the comparison to MGS? MGS really isn't that complex and thought-provoking. I love the story, I love the games, but it's rather simple. It's just done in a confusing and convoluted manner which gives the illusion of depth. Very similar to say Final Fantasy 7 (again, a game I love), there isn't any underlying metaphoric amazing insights into humanity hiding there, it's just confusing.