Question: Why did Kane want to abduct Carol Anne so badly and what would he have been able to do if he succeeded?
Question: What happened to Dana?
Answer: According to IMDb, a scene was scripted, but never filmed, explaining that she was away at college. The actual reason for her absence was because Dominique Dunne, the actress who played Dana in the first film, was murdered by her boyfriend shortly after the theatrical release of the first film.
Answer: He is in the first movie and is referred to as "The Beast." In this movie he is in his human form and he want Carol-Anne because he believes that she can lead him and his people into the light and crossover from this world to a better place.