Easy answer: goof and poor script.

My theory is a side-effect of Alice being the Good Dream Master but also Alice alive is that she can access her powers while awake. She just rarely does so, unless needed (like when drawing herself into Mark's dream in NOES5)
You see, a Dream Master, Good or Evil, seems to be powerful enough to manipulate the dream world so much, the real world is affected. In Freddy's Dead, Freddy is so powerful from all the souls of Springwood's children, he can turn the town into a maze and create frightening imagery. Thus, we can assume Alice has similar or opposite power too. But, why would she need to ever use it?
We DO see Alice use some of her dream powers while awake. For instance, as already mentioned, drawing herself into someone's dream. Also, while greatly overlooked, her daydreams have a sort of premonition effect. In NOES4, she is allowed a final goodbye from her brother and sees Dan getting attacked by Freddy. In NOES5, she sees her friend's dying her her unborn baby's linked dream.
I think it would be interesting to see how Alice used Kincaid or Kristen's powers in the real world. A super-strong girl, super-athletic blonde girl.I feel like "vampire slayer" should be in there somewhere

This question is good !! I kept asking this 100 times and could NOT figure out any answers to it.
Thee only notion I can come up with, is watch the spectacular documentary "Never Sleep Again". I will "guess" the outrageous director of this film, must've implemented this idealike a random thought - like a add on for good measure. Because it's logical, she screamsthe glass breaks very violently and loudlyI'm surprised a few people didn't get hurt.Alice didn't get in some kind of trouble for something ? LOL
Hell, rather than them jumping to the funeral, like a fade to black effect..they should've spent like 2-3 mins explaining this or getting someone in trouble for causing it. Like "Who's responsible for this" and then if Alice got in trouble or got detention or suspended, she could've fell asleep and Freddy could've bothered her. See how simple that idea is and how effective it could've been ??? (pi$$ed that I missed my calling with New Line)

I think the government would have took her away after that and relocate her to Crystal Lake with Doctor Tom Cruise

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