No need to reboot it. Robert Englund has gone on record saying he would love to do one more Nightmare movie, so why not just have a sequel that takes place after the events of FvJ?
I honestly don't think anyone will mind that this is a reboot. It's not as if anyone held the original series in high regard anyway. The prior movie was so bad (and the continuity had gotten so convoluted and made very little sense) that it bombed. Everyone was ready for a reboot.
@redhedjack: Um, Deadpool and Deadpool 2 did just fine in today's politically correct dystopia, and Austin Powers' humor is way more mild compared to Deadpool's, so I imagine there would be no problem.
crashchaos' comments