Yep...the sequel everyone actually wanted never got made.

I actually liked the second one better, it was similar to the difference between the first 2 RE games. The first one was a real task after you'd finished it once though.
There was much improvement in the weapons, combat, boss fights, and how your character moved around in the second game. Better, more involved (though strange) storyline, and a great ending that really did BEG for that sequel...they fucked up with the third one, and I don't even need to play it to see that.

Paula (or Pola) is also in Dino Stalker, which is a spin off shooting game, and you can play it with a special light gun, or whatever it's called. At least that kind of felt like a sequel, even though there was zero atmosphere. Shooters aren't generally creepy at all.

But unfortunately, if the long forgotten franchise somehow came back, the original canon will be all but abandoned in support of a reboot, I'm sure. After all, I feel that the RE Engine is here to placate to the newer generation of gamers.

That's just how I feel. But I suspect that's how Capcom prefers to handle their business. They just take what is old, and do a new take on it. I'll admit though, that I have very mixed feelings about that business tactic.