I liked the sequel a lot for its horror aspects, but this is a valid critique. The entire second half of the movie being a hallucination is cheap and the first movie balanced the psychological hallucination aspect better. But I still found the acting in the sequel to be stellar and the horror aspects to be very good. Smile 2 made the hairs on my neck stand up several times which very few horror movies manage to do. Overall I thought it was very enjoyable and great horror, but the story aspect is pretty flawed.