You always ask the hardest questions.
I didn't know about the canceled sequel until now. I learn it from you.
The period 2004-2006 was too crowded with hits. Some of the greatest games of all time were released. If Rise to Honor 2 had come out in 2006, it probably still wouldn't have made much of an impact. I don't remember much of the plot, but the game was very well made, with a big budget, very nice graphics, cutscenes, gameplay, cool characters... The controls and gameplay tried to be more casual to catch a larger audience. I have no explanation why it didn't become a hit. Maybe just bad timing?
The young generation nowadays doesn't understand the appeal of a game with Jet lee in the title. They grew up in a time without big movie stars. Especially those who practice martial arts like Jet Li.
The game cost a lot of money and most likely did not make it back. I doubt Sony will do a remake. Jet Li is a great dude. I'm sure he'll want to take part in Rise to Honor 2. The fate of Rise to Honor 2 is a bit like Shenmue 4, aren't we all lucky?