What do you mean? Freddy knew John Doe was the last Elm Street kid. He didn't kill him at the beginning because he needed John to find his daughter. If Freddy's daughter stepped foot in Springwood, that would allow Freddy to leave the town and start killing sprees in every other town.
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Yes, Kristen was the last of the original Elm Street children, the children of the parents that burned Freddy alive. Freddy wanted to get revenge on the parents by killing their children. Nancy, Tina, Glen, Rod, Philip, Kincaid, Jennifer, Joey, Will, Taryn, and Kristen were the original Elm Street children. After completing his mission in Part 4, Freddy decided to kill every other kid in town. Kids that probably had nothing to do with Freddy being burnt alive. The last kid in town was John Doe.
Originally John Doe was supposed to be Jacob, and he was supposed to see Alice die before he got sent to retrieve Freddy's daughter, but for some reason that got nixed and the character ended up not being Jacob.
A few years ago, Jacob and Alice did return in Freddy Vs. Jason Vs. Ash: Nightmare Warriors, though. Alice ended up getting killed by Freddy, but passed her powers onto Jacob before she died.