I'm not really sure how they could have shown goodness in Carface considering what he did to both Charlie and Anne-Marie during the movie, but it probably would have made him a more interesting character than just an evil mob-like boss. I thought that Killer, had some redeemable behavior during the movie since he does help Anne-Marie get to safety after Charlie dies. I think that there was something else about him that made Killer before the ending that didn't make him look like a villain, but I don't remember since I haven't seen the movie in ages.
I kind of liked Anne Marie's song. It's cute and showed us how she really just wanted to be part of a family. In retrospect, while the "What's Mine is Yours" sound has a nice beat to it, it does feel like it was just padding out the movie and giving more screentime to the young puppies, who didn't feel like they were necessary, along with their mother. As for the alligator song, it is weird, but I just never cared for it.
Yeah, as much as I do like the movie, I agree that it definitely has flaws. Most of the songs are decent, but not really memorable and some of the characters could have been written better, such as Carface. I also always thought that they should have made it clearer what happened to Anne-Marie. I thought that the couple would adopt her and she'd take care of Itchy like Charlie asked her to do, but it would have been kind of nice to have that confirmed at the end.
I've seen most of the series and while it does use the characters from the sequel, it also acts like none of the events ever happened. Charlie and Sasha aren't a couple or living at David's house like they were at the end of the movie, Itchy is still alive, Charlie pretty much forgot all of the character development he did go through in both movies, Carface is alive and Killer came back, despite not appearing since the original movie. I thought that the Christmas special they had was kind of cute though. I remember kind of liking the series back when it was airing on TV when I was little, but looking at it now, it just feels more annoying that it acts like none of the previous events ever happened. Granted, the sequel acted like the events from the original movie didn't happen either and the timeline is pretty confusing if you try to think about it, but I don't think it was as bad and it did reach a fairly satisfying conclusion.
I don't think that All Dogs Go to Heaven 2 is that bad. It certainly isn't as good as the original movie and I think that there are more flaws in there, but in terms of sequels, I thought it was pretty decent and fun to watch. I always thought that the design for David's step-mother was a reference to Anne-Marie since it kind of reminded me of what that character would look like grown up, even though the time difference between the two movies would prevent them from being the same person.