After New Line Cinema ensured they would be solvent for some time with A Nightmare on Elm Street 2: Freddy's Revenge, they did actually take the time to make the third installment more than just a simple cash grab. For one thing, (click articles) they spent a couple years working on it, and more (blog post) importantly got Wes Craven back on as writer and producer. The result? Something that cranked the concept up to 11.
Source: A Nightmare on Elm Street 3 Dream Warriors Movie Review (blog) - Decker Shado