Dream Drop Distance was the weakest entry in terms of story, I felt. For one, I really think it would have been a better game if you never played as Sora. For two, I agree that a lot of the plot twist stuff just felt convoluted and weird to me.

That being the case, I'm still 100% on board for Kingdom Hearts III assuming that they are keeping with it being the final game in the Xehanort storyline. I'm still excited to see how they take everything from the previous games and tie them up (or don't) in the end.