Movie sequels either take an idea established in the original film, adding to the lore, or they can lead to an eventual franchise. The sequel for Nightmare on Elm Street does a bit of both, but it also is very unique for a few reasons. The reasons that led to it popularity include it having a male scream queen as opposed to a lady being in the role. Which leads to the second reason as it representing queer horror, which I will explain more of that in a bit. The third reason is this is the scariest version of Freddy yet, before he evolved into more of a cartoon villian with silly one-liners and some pretty silly kills.
Freddy's Revenge is about a teenage boy named Jesse who moved into the Elm Street house. Freddy seizes this opportunity, using Jesse dreams as a conduit to gain access to the real world. This is a scenario that really has a lot of subtext to it if you really analyze it. Minor spoilers here, but Freddy is using Jesse's body for his kills, until he get strong enough. It's kind of like a Jekyll and Hyde moment. Another thing to point out. which leads into the queer horror aspect of the whole movie, but it can also be seen as a struggle with one's sexual orientation. In those times, there was a lot of pressure to follow the society norms, which being gay was not easily acceptable in those times. So if you think about it, Jesse's struggles against Freddy being in his body can be seen as struggling with the monster within himself. Even though the character itself was not identified as being fat, heck he even gets a girlfriend and they almost go all the way. But boy, there is a lot of subtext if you know what to look for.
There is a documentary on Shudder called Scream Queen which is about the actor Mark Patton, who was gay, and his experiences while filming Freddy's Revenge. It is well worth checking out and definitely makes you see this movie in a whole different light.
In conclusion, I would say this is the Nightmare on Elm Street because Freddy still has his balls. He straight up kills people with no remorse. My favorite scene is at a pool party, and Freddy is wreaking havoc. One of the kids decided to try to negotiate with Freddy saying he can help, and Freddy is just looking at him like who is this guy. He eventually has enough, grabbing and tossing guy as he tells him to help himself. The ending is a bit hokey with the while power of love being enough to defeat Freddy. But you can't keep a good dream demon down, especially when money is involved, and he would return for sequel after sequel.
If you are looking for an actual scary Nightmare on Elm Street film, then definitely this is the one to watch.
Till next time, Happy Halloween and stay scared!! -Tha Thrilla-