True, he did have a sexual predator vibe, but they didn't go as far as initially intended with it so he went from "child rapist" to just "child killer" with only slight implications of the former.
And I'd have to agree, it didn't add to the story to go back and re-introduce that element. Overall, the whole thing just ended up being uncomfortable and pointless.
Another thing about Haley's Freddy was that he seemed like he was trying too hard. Englund's Freddy was a genuinely a weird dude, and he sold it well. Haley's was just...there. And he had no real life as the character, when he walked he was stiff as a board. Englund has presence, he oozed charisma, especially in the darker installments.