We all agree that many things about parts of Bully like this just plain suck.
But let's face it, there was just things in the game that was lax. If the series would have been continued, maybe those things would have been improved, who knows. But it's not like it was a huge moneymaker anyway.
I don't feel that Rockstar ever planned to continue the series, just as I don't feel that the Manhunt series will ever be continued. So, maybe it's now just a Classic game, never to be repeated.