Contested Sequel: Over whether it marks the end of the good movies or the start of the bad movies. Some consider it a worthy follow-up to Dream Warriors with a strong, compelling lead character in Alice, while others consider it an absurd, shallow SFX spectacle that turned Freddy into a self-parody.
Fridge Brilliance: The 'dog peeing fire on Freddy's grave to resurrect him' is less of a Big Lipped Alligator Moment when you remember how Freddy was defeated in the last film: last rites being performed on his remains. He probably used Kincaid's dog to desecrate his grave.
Fridge Horror: Freddy needed Alice to pull in new victims. It would seem as if Freddy was holding either the Idiot Ball or Villain Ball for most of the movie by the way he was antagonizing Alice and seemingly intending to kill her. Of course, there are a lot of things Freddy could do to Alice that wouldn't necessarily kill her, but could keep her in a constant dream state with all the victims he could ever want at his disposal. Say, maybe a nicked brain stem or a concussion which could leave Alice brain dead...
The fourth game makes the hilariousness come full circle, because now you play as a child who is being haunted by the animatronics in his sleep.
In the Treehouse of Horror parody Nightmare on Evergreen Terrace, Martin's death is a direct reference to Sheila's. You'll probably hear Nelson's "Ha-ha!" in your head upon rewatching the scene.
"Holy Shit!" Quotient: The zoom out revealing Kincaid isn't just in a junkyard, he's on an entire planet covered in a labyrinth made of scrapped cars.
Moral Event Horizon: While Freddy was a horrible excuse for a human being before this, this is the movie that shows just how depraved he he: upon running out of the victims his Deal with the Devil lets him at, rather than be content with his revenge, Freddy chooses to do everything he can to reach out and get more people to sadistically murder.
So Okay, It's Average: Compared to the rest of the series. It's not as highly regarded as the first film, Dream Warriors or New Nightmare, but definitely not hated anywhere near as much as Freddy's Revenge, Dream Child or Freddy's Dead.
Squick: Freddy disguising himself as a human-like nurse. A make up-free Robert Englund in drag is suprisingly more disgusting than any violent act Freddy could dish out.
Tear Jerker: Alice imagining her brother Rick popping out of the coffin at his funeral and telling her he escaped Freddy. It's definitely notPlayed for Laughs and is a somber moment in a movie that can get otherwise very goofy. For anyone who's ever been to the funeral of a loved one, it definitely hits home as a form of wish fulfillment.
They Wasted a Perfectly Good Plot: As analysed here, the premise of Freddy exploiting Kristen's power to delay his death further and bring him more victims had a lot of potential that wasn't lived up to.
What Do You Mean, It's Not Symbolic?: Alice tries to use the abilities she inherited from her friends to fight Krueger, but they don't do anything to actually harm him. It's only when she successfully recalls the full Dream Master rhyme and stands on her own that brings about Krueger's defeat. The power Alice received from her friends could only take her so far. They gave her the strength not just to fight Freddy, but to find the strength to fight him on her own.
Kristen for being the actual last of the Elm Street kids, and knowing that Krueger is too strong for her to beat on her own so the only option she has is to let herself be killed to keep him from reaching the others. And it fails.
Shelia for being the very first non-Elm Street victim Krueger claims.
Debbie for her needlessly elaborate and cruel transformation into a giant cockroach before she's crushed to death.
And finally, Alice for being dragged into a fight with an undead monster she had absolutely no connection to, watching her friends die, watching her brother die, and realizing that the only reason Krueger could get to them was because of her.