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 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.
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.
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.