I think S2 is very good and S3 is perfect too despite the short and a few plot holes because it showed all my favorite characters unharmed and happy again but since Luz stays in her fantasy world until the end it seems a bit too "cheesy" even for Disney.

I'm only writing my opinion here but I know that many fans have criticized this "happy ending."

Only a little bit. You can tell a lot had to be condensed because of Disney.

I think the only thing I can think of for that is when Belos met his death. I expected his death to be more graphic and brutal but with it being a cartoon for kids ( or some older kids for that matter ) they had to go with how he went out. Maybe if he was petrified/turned to stone, then his death would've been more poetic justice because he would turn anyone who defied him into stone or murder anyone that stood in his way or any reason for that matter and him being turned to stone would've been more poetic justice where the fate he made so many others face was the same fate he would face if they went that route.

And all of the villains that were always hated and always evil all got punished in the end and were never redeemed.