'Nightmare on Elm Street' really lends itself to using new technologies. CGI would be a great way to exploit and embrace the dream sequences.
It's real simple - we all have nightmares, and the idea you can be in real jeopardy in them is a great gimmick. It's universal.
What's great about Freddy in this is when he gets to comment and manipulate the back stories and the fears of the characters - especially with Jason.