Dialogue time!
Luna: "Krueger! How dare you attack the innocent at their most vulnerable, you half-baked coward! As Princess of the Night, I demand you end your reign of terror before I end it for you with force!"

Freddy: (sarcastically) "Oh no! I've invoked the wrath of the almighty Princess of the Night! I'm so scared I might piss myself!"

Luna: "I'm not joking around, scum! Surrender now or taste my power!"

Freddy: "You'll be the one doing the tasting...(flicks claws at Luna, grinning)... of your own blood gushing out your whore mouth!" (quickly extends right hand like an arrow fired from a bow to claw Luna's face off who dodges it just in time as the blades barely leave a scratch on her cheek) "Just as I thought: all bark and no bite. Sorry, but I don't have time to play with you, bitch. I've got a bunch of whores dying to meet me."

Luna: (forms a ball of magic at the end of her horn and shoots it at Freddy who quickly moves aside; the blast barely grazes over his arm) "You're not going anywhere, Krueger! This night will be your last! Have at you!"

Freddy quickly learned that Luna was just as capable of controlling dreams as him. And if there was one thing he hated more than potential victims fighting back and triumphing, it was competition. Never in his life since his resurrection had he come face-to-face with one such as her. This deep blue alicorn with hair that looked as if it wore a piece of the night sky like a cloak. Freddy couldn't wait to cut her head off and put it up on proud display like a trophy. He would have it someplace where all his victims could see clear once they entered his world. It would be a symbol of his victory and their bitter defeat seeing the decapitaed head of their only hope rotting on a rusty metal pole. The face would look as if it were laughing and saying, "well, ain't this a bitch! Guess this's what I get for messing with the dream king!"

Luna cared deeply for innocent souls regardless if they were her subjects. The notion of anyone controlling dreams to commit murder leaves her feeling as enraged as when she turned into Nightmare Moon over a thousand years ago. It also put her in a position of higher responsibility that forced her to protect everyone as if they were her children and she was their mother. There was no way she would let Freddy Krueger cause more terror and death upon them after this fight. She had to win for the sake of hundreds, no, thousands, no, possibly millions counting on her for a good night's sleep.