Would this ending have been better?

Someone else suggested this alternate version of the ending.

After Jesse is taken over by Freddy, Lisa goes after him and on the way passes his house. She sees police there and we find out that Freddy/Jesse kidnapped Angela (his sister) and they're looking for them.

Lisa goes to the factory, and after getting by the dogs she sees the same closet they found earlier...but with blood dripping out. Fearing the worst, Lisa opens it but sees it's just the Mouse from before.

She finds Angela with Freddy, and along with her declaration of love for him she also tells Jesse to look at what he's doing to Angela. It's the combination of both thing (Lisa's love for him, and his love for Angela) that allows Jesse to force out Freddy.

And the movie ends with Lisa embracing Jesse at the Factory, without that bus scene. Maybe a lingering shot on the Freddy glove lying near them, the fingers twitching a little. It leaves the sequel hook that we know Freddy's still there but not as ambiguous as the school bus scene.