Third entry wants to be epic and give a full circle feel to the series by returning to the tournament and the fight against the loose cannons from the Cobra Team, but the film end up being over-dramatic and doesn't seem to be anything new to the table and the characters are threading over old stuff. This one is only for the most devoted fans.
Granted, the revenge plan conceived by Terry and Kreese is completely over the top and theatrical; in its perfidy it reaches an almost Shakespearian level. But it's a construction that works, as it enables the filmmakers to let Daniel-san go through a real crisis this time; a darker twist is added to the series, new depths are explored. Karate kid even finds himself questioning Mr. Myagi's mentor role.