I watched Last Action Hero just this past weekend. I have some nitpicks but I still really enjoy that movie. I do have to say that I don't think it really works as a parody of action movies. That's something it could get away with when I was a kid because I hadn't seen the kind of movies it was supposed to be making fun of. But now as an adult it became apparent that the movie sort of operates on its own wavelength that exaggerates how a kid who hasn't seen action movies would think of them if they only been described to the kid. It doesn't seem to have a lot to say about actual action movies themselves.
I was also sort of frustrated by the appearance of Death who kinda seems to destroy the logic of the film. I feel like he could've been left out of the movie altogether and almost nothing would change. It has no real bearing on the plot.
I also think I would've done something with the fact that the "real world" is itself a movie. I feel like there's a lot of fun to be had there But perhaps that would've been too meta.
Anyway, it's a fun movie. If you happen to be in the US you can find it on Netflix.