This musical number at least feels more connected to the film it precedes, since it's one of two major musical numbers in the picture (Hathaway does a great cover of Queen's "Someone to Love" at around the halfway mark). It's no great shakes, but the cast seems to be having fun with each other, and that natural chemistry and comfort is something that the newer picture genuinely lacks. It also is an example of genuine whimsy, rather than the forced whimsy that the above number tries and fails to generate. This film is a big reason why I'm an Anne Hathaway, both professionally and pruriently (if you know me well enough, you can guess my favorite part of the clip above). She's quite amusing and engaging in what could have been a toss-off or Shrek cash-in. And Cary Elwes has fun somewhat spoofing his image, as he plays a villain this time around.
Anyway, I have no profound conclusions to add, merely felt like sharing.