Rumors often turn out to be nothing but that. Rumors. The amount of times dreams were crushed on Bully 2 has become so insurmountable that people stopped counting it. For those of us who still have an "itch" for the game, and really want it, we just wait.
In all reality though we aren't surprised to see another GTA over Bully. Even games like Manhunt haven't been touched in god knows how long, when there's communities who follow it still.