As a plot this is well structured. I like the idea of presenting the plot by following its development. I also think this post is well organized and cleanly written.
But ultimately the piece fails in its goal to provide a guide for constructing a Lovecraftian adventure. This discusses none of the themes of a Lovecraft’s work. The idea of evil cultist is not Lovecraftian. The implied relationship between other world knowledge and insanity is genuinely Lovecraftian, but you don’t present it as such. Also, as to generating the ideas you present the discussion in a very linear fashion. With the exception of when, if and how to bring the monster in, you don’t deal with possible other routes for the adventure. A GM needs to be able to roll with it when things get way of course, so plots should not be a structured as this one. The GM shouldn’t know how things are going to resolve. I am sure you wrote this in one your advice stubs. This is a fine plot, and presented as just a plot it would be okay. But as a guide to designing a genre specific adventure, this fails.
There is place for these pastorial subs and this it, Moonhunter is like the fire and brimestone preacher of gaming, he praises what deserves praises and sprays damnation and hellfire on the rest.
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This one touches my soul however, thank you for giving my pain voice.