Never forget: Knack was the first officially revealed next gen game. It was a brave choice by Sony to begin their next generation by showing a non gritty, non fps, colorful platformer/brawler. In the same vein, they better not be too hesitant to fund a sequel. There is soo much potential for Knack as a franchise, with many things ripe for improvement. Essentially we have a Crash 1 to Crash 2 scenario where the sequel has the ability to utterly blow away the predecessor.
This e3 Sony, do not dissapoint.