This thread is very very old but it's a good one if there are any Halloween fans that find the ending to the movie confusing. It was never specifically stated that they were cloning but it's hinted because of the fetuses. What confused me about the ending concerns the cult, Danny, and Steven.
1. I always wondered if the Smith's Grove staff was once a real cult of Thorn that cursed Michael that was now conducting into DNA experiments. Or were they fake the whole time and just came across Michael as some unique superhuman based on Loomis' word? If so how did they even come across Thorn, and why pretend to be a cult in the first place? In the Unrated Director's Cut of the office scene between the two men Wynn has more dialogue:
Wynn: Ah, I was getting worried Sam I was afraid you wouldn't make it.
Loomis: Why, now?
Wynn: Because you were the first one to see it and you've recognized it's power!
Wynn: Evil. Pure, uncorrupted, ancient. You devoted your whole life in destroying it, while I embraced it, studied it.
Loomis: You.....are.....a madman.
Wynn: You cannot deny you've always wanted to know what was behind the power, to hold it, to control it. The druids understood this. I have been able to harvest that power. Oh yes, I've had my failures but this baby, Jamie's baby. We are at the dawn of a new age Sam, and I'm asking you join me.
Loomis: I thought Michael was a monster, but you....(gets knocked out).
For whatever reason Chappelle decided to omit the added dialogue. But Wynn still seemed to be aware of what Michael was just as much as Loomis had. If he and the staff just came across him being evil as it still appears in the T-Cut dialogue then what convinced them?
2. What exactly was Danny's role in this? It's clear he was to be the new Michael as Wynn was taunting him and everything but were the cult going to tamper with his DNA or something? How he was to be handled wasn't really established since they were more interested in the baby.
3. Steven. Ah yes, Steven. I've been wondering lately who the heck he was suppose to be: Michael's son or the result from a genetic experiment? While the beginning of the film still implies a rape, the ending implies Jamie was apparently artificially inseminated.