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, they spent a couple (blog) years working on it, and more importantly got Wes Craven (blog post) back on as writer (blog post) and producer. The result? Something that cranked the concept up to 11.
Source: A Nightmare on Elm Street 3 Dream Warriors Movie Review - Decker Shado