Ehh, a sequel would imply that the first piece of media is finished and a second one picks up where the first one left off, (un)intentional cliffhanger or not. Because of that, I would say, no. If there was a new villain, new characters or new motive, then yeah. However, this follows after the fight with Zeena, still following with the outbreak of the experiment gone wrong. All that this is would be labeled as a continuation not done by the official devs. In other words, fanon.
...Unless this becomes adopted by the official devs as canon, then it will remain a mod to remedy the lack of continuity and finalize the plot.
That...sounds nice. I'd say plenty of H-games would benefit from a system as such, and plenty of games feature a smaller sub-genre of that. Themed around a Sonic game? Ehh, would be hard to pull off. Doable, but you'd need God-tier animators and game devs lol. One can dream I guess.
Speaking of God-tier animation, imma say this: that raptor x Blaze animation has way too much effort placed in the emotive category, and I hate that it turned out to be one of my favorite animations of the base game for expressions alone.