I loved Queen Watevra
It made sense with the story and was used very creatively.
Like what? It explored the universe some more, gave room for more theories, built up a complete new galaxy, and made everything more complete. Of course it isn't as new as the first LEGO Movie, it's a sequel. It's not a new world, but more to the same. There isn't anything wrong with that. It's like introducing Voya Nui in Bionicle. And Metru Nui, Mahri Nui, Bara Magna, and, as a whole, Spherus Magna.
I can't stand most musicals. They take away from the plot, allowing less time devoted to the story. This is why I don't like The Greatest Showman.
However, I have a complete different view for the LEGO Movie 2. I was very skeptical walking in, but during, I admitted that I actually liked it. The songs were not only good songs, as my friends and I all agree, but they were funny and enjoyable (I've added both of Queen Watevra's songs to my playlist). If this movie counts as a musical, it's one of my favorite musicals yet.
But no one really gets the LEGO references. They were expecting movie fans, not LEGO fans in the audience too. Not only this, but movie references everyone gets, not just the LEGO nerds or something. Fabuland was for us, and it was blatant, unlike two of the three references you mentioned from LEGO Movie.