The problem most people have with the "its all a dream" endings is they don't get it. super Mario bros 2 took place entirely in a dream. its the only logical way to bring that area into this movie because Nintendo did it first in Mario bros 2! it literally all was a dream. That's why Bowser is confused in the previous movie as to why Mario is being so aggressive. that's why Randy made that choice. Yeah he knew there would be people a little butt-hurt about that choice, but its what made sense in the Mario universe. even though the dancing and gore didn't but he was just having fun with it at that point. come on he had fun with it. but tried to keep it slightly grounded in that universe he loved so much.