One thing I liked about the Elm Street series is how each movie built upon the 'lore' or the prior one, enhancing the rules and expanding what one can do in dreams. Here, in addition to being able to pull one into dreams (like Kristen in Part 3), you have a Dream Master who can inherit the powers of other Dream Warriors.
It is, however, a step down from the prior. It rather quickly disposes of the prior film's survivors, and we don't really have any build on any of the new characters aside from simple characterizations (one-note characters in a horror film? I am shocked!)
This movie also broke the streak of past/future Oscar nominees appearing in the film (no more will appear until the remake with past nominee Jackie Earle Haley and future nominee Rooney Mara). It is also what I consider to be the last 'good' movie in the main series (New Nightmare is only loosely a Nightmare film).
The kills, however, are the highlight of this film. Turning someone into a roach then crushing them in a roach motel, sucking the breath out, dragging them into a water bed and drowning them - this movie pushes what Freddy can do to your body while sleeping.
Now onto the Dream Child.