Nightmare 2 is extremely underrated IMO. It's a SOLID eighties horror film and my third favourite in the Nightmare series (behind the original and Parts 3). Here's my top 10 reason's why:
1. The soundtrack is sooooo creepy.
2. Kevin Yagher's Freddy makeup looks incredibly evil and realistic.
3. Freddy is scary as hell, and has an urgency and threat in everything he does.
4. I think Jesse is more "awkward" than gay. He played a great "goofy" teenager. Sure there were homoerotic overtones in the film (the coach being into S&M and all), but I don't think it hurt the film.
5. I think the whole possession idea was unique, and a great way to tackle the sequel.
6. 2 CLASSIC horror moments - Freddy revealing his brains - and the blades going through Grady and through the door (in Grady's death scene).
7. Pool Party!!! "You are all my children now" and "help yourself ^^^^^ker"... need I say more.
8. The acting was great for a low budget movie. Lisa really sells the scene when she faces off with Freddy in her kitchen. She looks totally petrified and overwhelmed, which in turn makes Freddy look that much more terrifying.
9. The bookend start and finish in the bus was really cool (even with the shoddy special effects).
10. Many people bash this film, but is has so much more going for it than Parts 5 and Freddy's Dead. Remember in part 6 when Freddy got beat up by his daughter... who happens to be a middle aged woman... now that is GAY!