Let's look at how the dream sequence is normally handled in horror films. First, we are shown the character falling asleep, though this rule can be broken if the filmmaker wishes to slowly abandon reality. Second, the dream is placed within the narrative to provide for a new scare for the audience, but it can also provide a cryptic prophecy. Third, once the dream is over the filmmaker re-establishes reality (usually through a series of false awakenings). Since the whole film is a dream, Coscarelli has no qualms about destroying our preconceived notions of the horror dream. He provides an almost inverted moment when Mike wakes up inside a dream. The tall man stands over his bed, and then with a jump-scare the zombie dwarfs are attacking him. Coscarelli doesn't show Mike waking up in a cold sweat. Instead he cuts to a sunny afternoon. The tall man passes Reggie's ice cream van, and we're left wondering if the dream is over, or really, just in general, what the hell is going on? Now, since the film is the dream, did Mike wake up into an Inception-like next level? This is all a part of the Coscarelli editing lesson: cut for dreamy atmosphere not logic.
The hero archetype is one we've seen throughout history. Luke Skywalker is a perfect embodiment of the hero type, and since Lucas modeled Star Wars after Greek mythology it is only fitting. The hero is born into an unusual circumstance, is constantly in danger, his fear tested, has spiritual guidance, issues with his patriarch, and a special weapon. Mike may not have all of those elements, but who's counting? He does, however, make a weapon out of a shotgun shell and a hammer. The hero normally undergoes a traumatic experience that leads him to his quest. I'd say that the death of his parents warrants the category of trauma. This leads to another characteristic of a hero – he is removed from his family. Same thing – dead parents. Even though he must defeat death, Mike has some good times too. He gets to drive an awesome Plymouth Barracuda, hang out and drink with musicians, and shoot plenty of guns. As far as nightmares go, it could be worse – oh wait, he's an orphan. When viewed as a psychological fantasy, the bizarre and incoherent narrative begins to work.
How does it rate?
There are a few factors at work with Phantasm. While it did not spark an entire movement in horror cinema, it found it's cult audience rather quickly. There are four sequels, which does make a case for its true landmark status. All of the films were independently produced by the same writer and director which also give it a higher ranking. In the end Phantasm is no Halloween, yet cannot be written off as merely a film to be seen when there's nothing else available. So where exactly does it fall in horror education? Within the landmark categories, Phantasm will earn you a PHD. It stands for something very special within the horror community. The idea of independence from a studio in all of your film making decisions over the course of five films, while creating lasting images on a minuscule budget make Phantasm a true horror maverick.