After looking at the world created by Nietzchka Keene for the Juniper Tree, there are a few areas of Hansel and Gretel that I would look to exploit when thinking about the 'real life' origins of the fairy tale.

First, I think the family dynamic in and of itself encapsulates a real life dilemma that a family of the time might have encountered. While there are differing versions the the fairy tale, the movie should spend enough time to set up this dilemma, it is in this time that we would become acquainted with the children as well as the synamic between the two parents. This time would allow the viewer to develop and emotional attachment to the kids while lending a sympathetic eye to the father, pinned to the corner, thinking this as his only viable option. This would make both the decision and the ensuing ditch in the forest something far more emotional than what is presented in the fairy tale. Though this prolongs the set up of the story, it stresses Hansel and Gretel's disconnect even more so than what a shorter set up allows.

As far as once Hansel and Gretel reach the witches house, I think the story needs to be more grounded in the witches intentions, focused more on the surroundings in her home. This would allow for a deeper character, escalating a certain feeling of inevitability for the witch to eat Gretel while at the same time making Hansel's situation more dire. This is the case because as we get to know the witch more, her intensions ring truer, and as they do, we begin to believe her passion to execute those intentions.

On the whole, I would look to make this a more real life situation through creating depth in the characters through more intimate sets, indicative of their character. This all works to dynamify characters with the effort of deriving relatability of the story for viewers.