Yes and no. They were never directly puppets per say. The Other was waiting for the right children because the Lord helps those who help themselves. If puppets were all that was required, the force which helped the Losers could have been rid of It centuries before. There were still choices to be made. In Dark Tower terms, the Losers still had to stand and be true. This happened both as children and as adults. Unlike Henry Bowers and his crew, the Losers were still afforded choices. Once those choices were made, however, they were within the cogs and wheels of a great machine.
Again, I don't see the issue. The story is solid. The characters are strong. The reward is earned. Whether or not they remember the details of their nightmare seems unimportant. If anything, it seems like a mercy to me. I remember my childhood friends too, but only in a vague, non-distinct kind of way. If you have stronger recollections you are more the exception than the rule. Irregardless, your beef makes no sense to me. Even if they had a memory of the events, it wouldn't mean that they hadn't been helped by unseen forces. If the real value is in the journey and not the destination, it makes no difference whatsoever what they remember.