So, after releasing that teaser trailer, they are thinking about canning the project? What the hell? You don't get people's hopes up like that!

Well, everything I've read (including the forum posts here) says that the game sold... exceptionally poorly. Unfairly so given how well received it was by critics. For what it's worth, I bought a copy last night (Yes, off GOG :P ) and tried it out for about five minutes. (It was about 2:30 in the morning. Needed sleep, damn it.)
So I trust I'll enjoy it just like people have been assuring me I will. One can only hope that, like the way good DVD sales caused TV networks to revive certain TV shows (Family Guy, Futurama, anyone?) maybe "aftermarket" sales will convince folks at like Ubisoft that the franchise is worth creating another game for.

Make EndWar 2 and don't make Beyond, Good and Evil 2. Lol to Ubisoft.

I bought the original in a pack together with XIII and PoP Sands of Time. I had already heard of how awesomely good it was, I actually had a lot of fun playing through it.
I think the problem with it is that it looks too much like a Disney cartoon. Not that I don't like it, quite the opposite, but I believe this sort of thing doesn't sell much, unless it actually IS a Disney Cartoon game. :P

Well, I definitely got that impression just from the opening few minutes I got to play. When that shield failed and the big, bad aliens came down, and suddenly "OH NO, LOOK AT THE POOR CAPTURED ADORABLE WOODLAND CREATURES! (GASP!)" Well, the initial impression was "This is going to be too cutesy for its own good, isn't it?"
But again, I'm taking people's word for it that there's more substance to this. And I can already see it. The banter amongst the characters seems pretty fun, and I'm already pretty impressed with the quality of the acting. The actress who does Jade isn't familiar to me, and I'm the type to obsess over voice credits, but I'm already liking her.

Without spoiling too much, you're already touching on one of the game's major themes: first impressions can be deceiving. Keeeeep playing. ;-)

I know the first didn't sell great at first... but like Grim Fandango and Psychonauts, I think it's one of those long term classics that has picked up a lot of fans along the way, through word of mouth.
Fingers crossed though...

Well, if the supposed leaked in-game footage posted sometimes ago was indeed from BG&E2, I must say that a cancel would not bother me.
To see a good licence destroyed by Ubi's "Prince of Persia / Assassin's Creed" machine, where the main character has to make incredible jumps on and over buildings and walking on walls... no thanks...
If the video was not from BG&E2, well in that case, I really hope they will not cancel it.

Is nothing ever really certain? I have faith that it will come though, Michel Ancel hasn't been doing anything else lately either, so he must be working on BGE2. :)
Keep the positive attitude! :p

Maybe they were not satisfied with the results up to that point either, and so are now unsure.

it was already officially announced, by mr ancel, and at some event... so either they are having doubts, or their management are all reading from different scripts...

I uploaded a much better quality version here. ;)
It's clearly from BG&E 2, comparing it with the teaser trailer, especially.
VERY Mirror's Edge-y -- there's even the plane part.

Indeed, very Mirror's Edge-y, but also very Assassin's Creed-y or Prince of Persia-y. Too bad it doesn't seem very Beyond Good and Evil-y.

Just as well that they can that travesty. The teaser trailer bugged me to no end. I'm not asking for too much when all I want is a game that actually feels like a sequel to the first one, am I?
Also, Ubisoft is made up of stupid people. Always has been, and apparently will continue to be. They don't market the game well enough, and for some reason blame the game itself for it. Morons, I say