Hasn't anyone watched the first film? Didn't anyone see how Freddy reacted when Nancy dumped him with kerosene and lit him up? When she broke the jar on him he began to shout "NO! NO!" and shook like a chihuahua out in the snow. I believe Wes Craven's vision of Freddy had him having fears of his own. Freddy is terrified of fire. Watch Freddy's reaction in New Nightmare when he gets locked in the boiler right at the end. He's terrified of the flames. Freddy's character was ruined in sequels and a dreadful TV series. But when Wes Craven was at the controls of the character, he made Freddy deathly afraid of fire. It's the sequels that didn't remain true to the Freddy persona that Wes had envisioned.
True, but again remember in the Real World he's mortal and can feel pain, its also around this part where it gets confusing, after killing Nancys mom we then go under the impression that the whole movie was nothing more than a dream of some sort which in turn adding the car scene at the end makes it even more confusing to the audience but yet at the same time leaves it open for a sequel. I did see a video on youtube showing Glen's extended death scene and they had a deleted clip thrown in there of Nancy screaming "I'm awake I'm awake this isn't a dream" right after the tongue phone scene. I feel as if that had been left in people might have suspected that the whole movie could be a dream til the very end of it or at least personify it that way. In New Nightmare that wasn't really Freddy to begin with it was supposedly a demon who was trapped in the Nightmare series for so long that he liked being Freddy but didnt want to give that image up thus making a "darker....More evil" Freddy than what we saw in the past films.