I've only seen Labyrinth once, long ago - but this was fantastic fusion. The beginning was creepy! I love the magical feel of it, the story behind it all only revealed to us in bits. It was amazing how you mixed the magical with the Stargate, took Atlantis and sort of twisted it slightly. Your goblins made me think of the heartless from Kingdom Hearts, only without the antennae and with sharp pointy teeth XD That imagery really helped with the magical/fantastical feel of the fic.

I also liked how John chose Rodney, that he took Jeannie because he needed Rodney's help. Like fanficfan_123 said, this could be interpreted either way, but all the same - I'm glad Rodney got to go back in the end. I like to think he'll be reunited with John, Radek, Ronon, and Teyla.