Sorry for the double post, but I have now seen the silent film version and it DEFINITELY represents Barrie's story the best (which makes sense, since he was alive and had copyright at the time it was made). It's not perfect, and they ignored his intended screenplay in order to make it more based on the stage version and thus more theatrical than cinematic (though there was some location footage), but it goes considerably further than either of the later film versions.
The main problem is the Americanization of it--I'm not sure if that's unique to the American version or if there's a British version. The latter makes sense because the only pictorial element of this could easily be replaced, namely, the pirate flag being replaced with the national flag--in the version I saw it was the American flag rather than the British flag, but there was no footage of any actors in the one shot in which it was visible.
But even worse than that (though related) is the line, "Soon I should be president?" I'm serious--instead of saying "Soon I should be a man?" after "Would you send me to school?" "And then to an office?" he specifically says PRESIDENT, as if that makes any sense at all.
Grating as that is, though, mentally substitute "man" for "president" (and "British" for "American") and it's very faithful and very enjoyable. Still not the ideal (especially given the time, although for its time the special effects were very good), but closer to it than any version I've seen so far.
I can even forgive the parts they cut out (The Mermaids' Lagoon, Hook's soliloquy, When Wendy Grew Up) because it's a silent film, and the first of those and especially the second wouldn't work right without sound. Besides, none of them were in the original 1904 production of the play anyway. All told, it's the best one so far, and sadly it's likely never to be dethroned.