These are what we call the 'YMMV items.' Things that some people find in this work. We call them 'your mileage might vary' because not everyone sees these things in the same way. This starts discussions in the trope lists, a thing we don't want. Please use the discussion page if you'd like to discuss any of these items.
Breather Level: The Entrance Hall, especially since it falls between the very difficult Ghost Ship and Time Device levels.
Fridge Logic: How did a guy who was such a wimp when he was alive suddenly become so good at fighting when he's revived as one of the undead?
Shame is an excellent fuel. Also, you can't kill a skeleton with an arrow to the eye.
There's nothing to say Dan was necessarily a wimp; he was the first one to get killed because he was one of the first to get involved in the battle.
For that matter, why isn't Dan under Zarok's control? Not being commanded by Palethorn during the sequel kind of makes sense, given that he almost certainly didn't have the 100+ years of experience with the spell book that Zarok had, but why didn't Dan come under Zarok's thrall like all the other zombies during the first game?
It seems like the implication was that Dan was sort of locked in-between worlds. Unable to truly pass on to his eternal reward because, well, he didn't earn it.
Topped off by his OWA form being a rather anemic-looking dragon with his own head on it, and his "You Are Doomed" speech being interruped by more chicken clucking. This troper lost the final battle the first time around simply due to laughing too hard to play or even pause.
NONE SHALL DEFEAT THE MIGHTY ZAROK!! Awwwk-bokbokbokbokb—A-HEM...so prepare to die.
In the original game, the cutscene after escaping Peregrine's Castle. Dan's scream is priceless.
Zarok's book includes powerful magical tomes, how to look good in your 400s, and card tricks!
Also, Zarok's reaction after Dan manages to defeat his champion: "...Bugger."
Lots of stuff said by the characters in the Hall Of Heroes too.
Woden The Mighty: "Fortesque, you jawless arrow-magnet! What are you doing back here?!"
Game Breaker: Woden's Brand in the PSP remake. However, because of all the mini-game hell you have to go through to get the carnival tokens, it better damn well be one.
To clarify its Game Breaker status, Woden's Brand can dispatch anything short of Shadow Demons and bosses in a single hit. If you have the patience to get this weapon at the earliest possible time (the first time you go to Gallowmere Plains), you will use it for the rest of the game. Every weapon you get from the Hall of Heroes will rot in your inventory while you swing Woden's Brand around. Excluding the parts where you're forced to use other tactics.
Nightmare Fuel: Humorous as the original game is, it still involves battling undead/demonic enemies. Special mention goes to the scarecrows.
The Sleeping Village level. The first half of the stage is populated with all the townsfolk turned insane due to Zarok's black magic. Which includes the children. A chunk of Dan's time will be spent running from axe-wielding, constantly-giggling girls.