While the animation from the old shorts was reused, the backgrounds in those clips were re-designed. It is most evident in the clip from Robin Hood Daffy (1958): The sky in the original short was yellow, while it's blue in Mucho Locos.
A darker premise of the imagination shown here appeared in the film "Jakob the Liar" many years later.
The curious looking space age items perched on the house roofs are state of the art (for the time) television antennas!
The Chinese woman Daffy encounters resembles Chinese American film actress Anna May Wong.