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I think the Sunset Grill represents hell. The old man who calls his customers by name is the devil, the auburn sky is the flames of hell, etc. The song is about how modern urban life, with its mindless hedonism, callous indifference to human suffering, and unethical pursuit of riches is leading us all to eternal damnation. Don Henley explored some of these same themes in Hotel California, but this song is even more chilling. The song suggests that we are all content to accept our doom willingly, in a sort of mass delusion, since "all our friends our here." (At least in Hotel California, the protagonist tried to escape). Henley is one of the greatest poets of our time, rivaled only by the very best work of Bob Dylan, Joni Mitchell and Bruce Springsteen.
Oh I like,I like. :)