It's kinda sad & frustrating that after all these years and particularly as lately Wes Craven passed away, now we're having this discussion here!!
But the world would have been a totally different place if we all had the same taste & opinion, so we have to deal with this sort of shits sometime.
Anyway to put it in short & simple, like any other slasher or horror movie film series ANOES also got some unnecessary & terrible sequels where at times they indeed focused too much on 'funny Freddy' or whatever but this is nothing but simple arrogance to say there's nothing iconic about Freddy Krueger or "Freddy Sucks"! I don't understand how much standard of knowledge & taste it requires for someone to understand that the concept & presentation of Freddy Krueger is one of the most original & fascinating creations we have in our beloved genre. If we even put aside his character attributes, looks & iconic razor gloves; where most other major iconic characters i.e Jason, Leatherface or Michael Myers are at times like unstoppable killing machines, Freddy on the other hand is way more unpredictable, like Repo said, he has his own domain in every victim's cruelest nightmare where he often plays with their darkest fear. Now if that doesn't make him interesting or iconic to some horror fan then I've to say he/she may have some other funny reasons.
For any great & deserving character in the process to become an 'Icon' among the genre fans, doesn't require a whole bunch of series of stories or films; one single great original story is enough. Horror movie iconic characters like Jason, Michael, Leatherface as well as Freddy would have still treated as HORROR ICON if they even never made those sequels (& remake) back then & till now.