Much as most of us absolutely hated SH, it wasn't a disaster for either Sean or the producers: Domestic: $46,982,632 + Foreign: $50,624,821 = Worldwide: $97,607,453 and another 30 million in DVD sales in 2006 alone. Cost to produce: 50 million. So it actually turned a nice little profit. It furthered Sean's credentials in the horror genre and geek world. Its all a matter of how you look at it really, but SH was and is very respected in the genre.
The chatter on the geek boards about the planned sequel is that they hope they focus on Christopher to follow along with the second edition of the video game. Therefore, a second SH would be a good project for him as he would be the true lead in the film if they had the presence of mind to ask Sean back.
I have the idea that he actually LIKES that particular genre. He seems to have enjoyed himself on each one that he's worked on so far.
Listening to my neice, I understand that the crews, producers and directors on films in this genre are a lot younger, more relaxed and fun, so that could have something to do with it as he seems to enjoy interacting with young people. One thing he really hates is for his work to be boring.