This movie is appallingly bad and the worst of the series.
So many things wrong here, I may as well go down a list:
1 - Weak congruity and virtually no story progression.
2 - Terrible script. The screenplay barely bodes well. Glitches all over.
3 - Pitiful special effects. For instance: Freddy blasting out of Jesse in Grady's bedroom is one of the most horrendous things I've ever seen on film. It resembled a manikin show.
4 - No one is killed in a nightmare. That all by itself makes this movie the bastard stepchild of the franchise.
5 - Freddy's motivation and reasons why are lost. Furthermore, Krueger is supposed to be a dream killer, not a possessor. Here he comes off more like an evil Patrick Swayze in Ghost.
6 - Overloaded with 2% tricks and theoretical things that don't work or bode well (exploding parakeets, canine face mutants.)
7 - No scenes from Freddy's boiler room.
8 - Freddy, himself, is this movie comes off as inept, generally ineffective and borderline lazy.
9 - Freddy's own death here is absurd and embarrasses the character. In what other Nightmare movie would something as simple "I love you" be enough to defeat Krueger?
10 - The super vague and inconclusive ending essentially renders the whole thing pointless.
How anyone can like this junk is bizarre to me. This is the most exceedingly bad of all the Nightmare films. Every little thing about it was ridiculous or random. A serious drop in quality from the gem Wes made with the first film that would later be completely upstaged by the vastly improved third movie. The one thing I give this movie kudos for is the opening sequence on the school bus, arguably one of the best moments of the series. Too bad the rest of the movie is tripe.